Solo 401k

[Tom A1]

I have a one person LLC and am thinking about a solo 401k. What tax records/forms do I need for solo 401k and does TurboTax online premium have the necessary capability or will I need some other software product? If I am over 59-1/2 can I contribute to a solo 401k and immediately roll it into a separate Roth IRA? If so, what are the limits?

[KarenL4]

Hi, TomA1,

Here is a great article from TurboTax on Solo 401(k)s.  Per this IRS publication, "A one-participant 401(k) plan is generally required to file an annual report on Form 5500-EZ if it has $250,000 or more in assets at the end of the year. A one-participant plan with fewer assets may be exempt from the annual filing requirement."

TurboTax online premium will help you meet your self-employed reporting needs (or you can use TurboTax Desktop Home and Business, if you prefer).

Whether or not you can make a solo 401(k) conversion to a Roth IRA will be dependent upon your plan rules. Please discuss that with your plan custodian.  Contribution limits are governed by the rules mentioned in the first article.

Hope this helps.

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Regards,

Karen

TurboTax Expert

[quorumof1]

Hi There

My opinion-

TurboTax does not support IRS Form 5500-EZ- Annual Return of A One-Participant (Owners/Partners and Their Spouses) Retirement Plan. 

Form 5500EZ should be filed directly with the Department of Labor. Please see link below for requirements and limitations.

How to file 5500 EZ