Tax Filing Requirements for the Solo 401k Plan
The Solo 401k is considered tax-exempt according to the Internal-Revenue-Code Section 401. Therefore, the filing of state or federal income tax is not required. This plan typically does not have annual filing requirements, unless Plan-balance exceeds $250,000 in assets. This includes all liquid cash and non-liquid assets. If this is the case, a short 2-page information return (known as Form-5500EZ) is required to be filed with the IRS by July 31st. If the plan balance is less than $250,000 by December 31st, the filing is not required (except when plan was terminated).