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I am a sole proprietor and opened a solo 401k with TD Ameritrade at end of 2018 and then funded it before the tax filing deadline in 2019.

I understand that Form 5500 (5500-EZ) needs to be filed annually in event account assets exceed $250,000 or if the account is terminated.

When I look at certain lines of 5500-EZ:

2b) Employer Identification Number (EIN) (Do not enter your Social Security Number.)

3b) Administrator’s EIN

TD Ameritrade accepted my solo-401k application with only my SSN given as ID.

This is confusing to me. Who should apply for these EINs and when.

Chris W. Rea
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Maverick
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1 Answers1

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An EIN is normally needed in order to contribute to a Solo 401K. You should double check that your application with TD Ameritrade was for a Solo 401K and not some other investment vehicle. If TD Ameritrade created a Solo 401K for you without it, then you should get one right away and let them know what it is.

Getting an EIN is instant and free. Just go to the IRS page, apply, and write down the number they give you. Then contact TD Ameritrade and let them know your number--you should also use this number for your schedule C filing. That phone call might be a good time to find out why they did not ask for it up front, as other providers do.

Be sure to check back here with what they tell you, as I'm curious how this happened. My guess is that it isn't technically illegal to have an Solo 401K without an EIN unless you have to file a related form with the IRS, but it seems odd for your provider to put you in that potential position by not requiring an EIN up front. When you switch over to using the EIN, you might have to redo your plan documents, and there's a decent chance you are going to trip an IRS audit flag.

farnsy
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