April 15 may have come and gone, but if you are the plan administrator for a Solo 401k or any other ERISA retirement benefit plan, there is another IRS deadline that you need to pay attention to. Neglecting to file a Form 5500 or filing one late can result in costly penalties.
The major benefit of opening a Solo 401k is the ability to contribute more than all the other tax-deductible retirement accounts available to a self-employed individual. The one “downside” you may have seen mentioned when opening a Solo 401k is the “additional paperwork” that is involved if you are acting as your own plan administrator. This additional paperwork is the yearly filing of the Form 5500 once your Solo 401k account reaches a certain size.