Roth Solo 401k Plan | Contributions to Roth Solo 401k

QUESTION: With the advice of my CPA, I have made contributions to both my Non-Roth and Roth Solo 401k plans.

Does my solo 401k provider need any of that information in regards to paperwork that needs to be filed with the IRS in connection with the Roth solo 401k contributions as well as pre-tax solo 401k contributions?

Thanks, Jane L. in Virginia

ANSWER: Your accountant will need to report the pretax solo 401k contribution on line 28 under the adjusted gross income section of Form 1040 so that your taxable income  for the year is reduced.  With respect to Roth Solo 401k contributions, they are not reported on Form 1040 since Roth Solo 401k contributions fall under after-tax contribution category.  Further, once your Solo 401k plan is subject to the Form 5500 EZ filing requirement, which applies once the total market value of your solo 401k is over $250K as of December 31, both the Roth Solo 401k and pretax contribution amounts will be reported in part III for Form 5500 EZ.

Lastly you may use the solo 401k annual contribution form found under the forms tab of our website to help document both solo 401k contributions (Roth and pretax solo 401k contributions) to the solo 401k.