I'm (finally) doing my taxes. For those with solo 401(k) accounts, I have discovered two things:
- Starting in 2007, the IRS raised the lower limit for mandatory reporting of these accounts. Now, if you are a typical solo 401(k) holder you don't need to file a report for the Solo 401(k) until it is worth $250,000. In the past, the reporting had to start when it was worth $100K. The form used is IRS 5500-EZ ( http://www.irs.gov/pub/irs-pdf/f5500ez.pdf
instructions at http://www.irs.gov/pub/irs-pdf/i5500ez.pdf
). Hey, if the market does as poorly as everyone seems to expect, maybe I'll NEVER have to file one of these forms. Yippee!
- TaxCut does not do a very good job with solo 401(k)s. I'll switch to TaxAct or TurboTax next year.