- May 8, 2018 at 1:54 pm #191929
I just received a 1099s for the sale of a property held by my solo 401k – what do I do with it? The property was purchased with cash and all proceeds from sale went back into the 401k. Do I need to report anything to the IRS and if yes how?
Thanks in advance for your response.May 8, 2018 at 2:17 pm #192236
Dock David TreeceModerator
Thank you very much for your question. Based on the situation you’ve described, it sounds like this 1099 may have been issued in error (if it was issued to you personally). However, it’s hard to tell without knowing more details. You may want to speak with a licensed accountant to make sure. In the meantime, you may want to make sure that the property was held in the name of your 401(k). If the 1099 was issued to your 401(k) that held the property you shouldn’t need to report it. Also, confirm that all of the proceeds went back into your 401(k). Lastly, check the settlement statement to see how the seller is listed and make sure it lists your 401(k) and not you personally.
If you’re working with a Solo 401k provider, you may want to check with them to make sure everything is in order. If you don’t have a provider or want to speak with one about specific questions, you should definitely check out our article on the Best Solo 401(k) Providers here: https://fitsmallbusiness.com/best-solo-401k-providers/
Hope this helps. Best of luck on your future investments!