Solo 401k RMD Questions

QUESTION: How much do you charge to calculate the Solo 401k RMD and file the Form 1099-R?  One of our new clients had another CPA setup a self-directed Solo 401k plan and he can no longer help them and I don’t have any experience with these.  My client just setup a Solo 401k plan in June of this year and the wife is 73 years old and the husband is 61 years old.  I can probably calculate this based on the value they have in their Solo 401k savings accounts, but I don’t know much about these Solo 401K plans.

ANSWER: The first year for which RMDs must begin (distributions for the age 701⁄2 year) is the only year the Solo 401k owner can wait until the following April 1 to take the distribution. In following years, distributions must be taken by December 31 of each year.

That said, the Solo 401k RMD must be distributed by 12/31 and Form 1099-R filed with the IRS to report the distribution by the January 31, deadline, with a copy mailed to the Solo 401k client for filing with his or her personal tax return.

Therefore, since we are not the Solo 401k provider of your client’s Solo 401k,  We can process the RMD calculation after you provide the total value of the Solo 401k as of 12/31/ of the previous year, and process the 1099-R reporting for a small fee. Please call us at your convenience to discuss further.