Speak with a Broad specialist:
(800) 395-5200Schedule a CallOpen an Account
Speak with a Broad specialist:
(800) 395-5200Schedule a CallOpen an Account

February 14, 2022

Solo 401(K) Annual Compliance FAQs

What does the Annual Compliance fee include?

  • Plan Amendments as required by the IRS
  • Restatement of Plan Documents per IRS regulation (usually every 5 years)
  • Responding to IRS Compliance Checks
  • Assistance with filing of tax forms 5500-EZ (if required)
  • Guidance regarding investment rules for all forms of alternative investments
  • Guidance on UBIT and UDFI rules
  • Guidance on Disqualified Person and Prohibited Transaction rules
  • Guidance regarding Annual Contributions
  • Assistance in transferring IRAs or other 401ks into your new solo 401k

Do I need to update my Plan?

Yes, you do.  All Qualified Retirement Plans must be updated on a regular basis.  This is because the lawmakers in Washington are constantly changing retirement law.  The Plan Amendments that we send you keep your Solo 401k Plan compliant with the newly revised laws. In addition to these Amendments, every 5 years your Solo 401k Plan will undergo a complete restatement. This revised Plan will also be sent to you. Broad Financials’ Annual Compliance fee covers the cost of Amendment and Restatement processing of your Solo 401k Plan.

Can I update my Plan myself?

Yes, but you will need to hire an ERISA attorney to obtain a list of the changes from the IRS, figure out which paragraphs in your 125-page Plan need to be amended, and then prepare an appropriate amendment. The easier option is to spend a fraction of the cost and let Broad handle it for you.

What happens if I do not pay the fee?

Your Plan will not be updated, and your account will be closed.  This will result in your Solo 401k being viewed by the IRS as having been fully distributed and thus taxable (and subject to the 10% early withdrawal penalty if you are under age 59½). As the Volume Submitter (master plan administrator), we are required by the IRS to maintain an accurate and updated list of all the active Plans in our system.  For a Plan to remain active, it requires the necessary updates.

DISCLAIMER – Broad Financial LLC does not provide legal, tax, or investment advice.


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Montvale, NJ 07645

Phone: (800) 395-5200


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