IRS Lists Solo 401(k) Plans as Audit Target

| April 15, 2021

Shared by: Kelton Collopy, QKA

If your business sponsors a “solo 401(k)” plan, it may be in the crosshairs of the Internal Revenue Service.  The Service’s TE/GE (Tax Exempt and Government Entities) division has identified one-participant 401(k) plans as among its current audit initiatives.  In its web posting announcing the initiative, TE/GE states:  “[t]he focus of this strategy is to review one-participant 401(k) plans to determine if there are operational or qualification failures, income and excise tax adjustments, or plan document violations. If you have any employees at all, we would recommend checking your plan’s eligibility to ensure that the plan’s eligibility was designed to  require proper service and prevent immediate eligibility. Please reach out with any questions.”

Please see the full article HERE.  

Source: 4/9/21