Solo 401(k)

[Panoramic]

Does it matter if the custodial financial institution setup the Solo 401(k) account under the individual's SSN instead of the Schedule C business's (LLC) TIN? They say "no" because it is, after all, a Solo 401(k) and not a "regular" 401(k) for a business with multiple employees.

Wouldn't it come clear to the IRS from my income tax return and from the annual form 5500 I must provide to the IRS, where both SSN and TIN are provided? And does it even matter what the institution does "internally" within their systems since (I believe?) they have no reporting requirements direct to the IRS other than a 1099-R in case I take a distribution?

Many thanks!

[Corduroy Frog]

My limited knowledge

I would think, with my extremely limited knowledge, the natural progression would be:

1) IRA would be under the individual's Social Security #.
2) 5500 should be filed under the business' FEIN#.

In recent years, custodians have gone ga-ga over this idea of calling your account "self-directed." Self-directed means YOU get to file the 5500. YOU have the administrative burden and liability for the account. But THEY get to call the shots with respect to the money - I'll bet they've tied up your retirement money into one of their "house" accounts and are calling it by the name of some well-known mutual fund.

Last one of these I dealt with (for about 50 employee-participants), I made the agency/provider responsible for filing the 5500 as a condition of the sale. Of course, I had to provide some data, but the responsibility rested with them.

I'll get off my high-horse. I get cranked up when thinking of those in the money handling industry.

[Panoramic]

Maybe All is Not Lost After All!

Corduroy Frog, thank you for the insight. Here's the rest of the story ...

The Solo 401(k) was actually setup before the end of last year, but I have not made the contributions yet nor filed my 2006 taxes (thank the gods for tax extensions). I've been holding off on the contributions (employee + employer) until I resolve the EIN/SSN situation. As of Friday, I finally got them to make a decision: they will NOT change the account setup from my SSN to my company's TIN.

Oh well ... if the 5500 is the ONLY reporting requirement for a Solo 401(k) (other than the 1099-R in case of distribution) ...

<Um ... can anyone confirm that the 5500 *is* the only regular reporting requirement for a Solo 401(k)? >

... then the financial institution will not be filing anything to the IRS different from my 5500 form's employer TIN. Case solved it seems, and I can go ahead with my 2006 contributions and then FINALLY get my taxes done thankfully.

[veritas]

Look at the rules for 5500EZ

If required this is the form that most likely needs to be filed. If under 100K in assets you may not have to file anything.