The one-participant 401(k) is simply a traditional 401(k) plan covering a business owner with no employees. This is the only condition to the one-participant, or solo 401(k) plan. It acts and is treated like any other 401(k) plan.
Essentially, this plan has the sole owner and sole employee making contributions to the same one plan.
This means you will report the total amount (as sole owner and sole employee) contributed as an adjustment on Schedule 1, line 15. You will not report the owner-side contributions as a deduction/expense to your business income schedule (Schedule C, Schedule F, etc.)
To report this within the program, please go to:
- Federal Section
- Adjustments to Income
- Contributions to SEP, Simple, and Qualified Plans
Is there anything related that I should know?
If your one-participant 401(k) plan has $250,000 or more in assets at the end of the year, then you may be required to file an annual report on Form 5500-SF.
If your plan has less than $250,000 in assets at the end of the year, then it may be exempt from the annual filing requirement.