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Should I fear form 5500

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  • Should I fear form 5500

    Background: changed jobs a couple years ago. Have old 401k still in previous employer plan. New employer plan options kind of suck (not great options/high ER) so I’ve been reluctant to roll over into new plan. I have a solo 401k I opened a while back with a nominal amount. $1000 or so from a brief locums gig while getting credentialed which was paid 1099. Current job is W2. No plans for further 1099 work in near future but I think (hope?) I can continue to keep the solo 401k since i “might” do that again at some point in the future. I am considering moving old plan into solo 401k but it would then exceed the $250k threshold for form 5500. I’ve always done my own taxes. Is form 5500 something I could file myself, or is it sufficiently burdensome to consider maintaining old account at old employer and not moving to solo 401k?

  • #2
    never done but i doubt it is more exciting than say an 8606.

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    • #3
      https://www.irs.gov/instructions/i5500ez

      Depends on your reading skills!

      https://images.app.goo.gl/dBdThT9N7NHqsmMa6

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      • #4
        Edit: Tim's post came in while I was typing. I defer to him.

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        • #5
          It seems far more daunting than it really is. Most of it is boilerplate, simple status of the contributions, assets, distributions and your particular plan characteristic codes. The latter can be a little tricky, but once you have done it one time, it is pretty trivial.

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          • #6
            5500 seems quite simple, and relatively brief.  I would not fear filling out the 5500 return.

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            • #7
              Have no fear - it's a learn-by-doing form. The hardest part is not forgetting that the due date is 7/31.
              Financial planning, investment management and CPA services for medical and high-income professionals | 270-247-6087

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