
IRS Lists Solo 401(k) Plans as Audit Target
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.” By way of background, a solo 401(k) plan is a traditional 401(k) plan covering a 100%…
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