Is There A Target On That Plan’s Back?

June 2, 2021 | posted in: Accountants | by

The IRS Announces New Audit Focus on Solo 401(K) Plans

If you have clients whose businesses sponsor 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 for fiscal year 2021. 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.” Read more from the IRS here.
 
Some common pitfalls to be aware of may include:   Read More  »