Updated: Apr 23
When determining if you must file From 5500-SF or Form 5500-EZ or not, it is important to know what funds must be included in the calculation.
To determine if the $250k limit has been met, you will need to add up the value of all assets in the plan, not the accounts individually:
“If you participate in multiple solo 401k plans, all the plans' assets must be aggregated to determine if the $250k threshold has been met.”
The total plan assets for all participants under the Self-Directed Solo 401k plan must be added together to determine if the cumulative balance is over $250k. So, for example, the individual accounts for spouses and partners under the same plan will need to be included in the calculation.
All traditional, alternative and cash investments need to be added together to get the total value.
If you took a loan out of your solo 401k, the balance of the loan as of December 31st is treated as an asset, not a liability, so it must be included in the calculation to determine if the $250k threshold filing requirement has been met.
IMPORTANT: If you participate in multiple solo 401k plans, all the plans' assets must be aggregated to determine if the $250k threshold has been met.
Visit the Form 5500 Corner webpage, for additional information on one-participant plans and the instructions for Form 5500-SF and Form 5500-EZ.