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Start the Year off Right – With a Plan

As the calendar turns to a new year, it is an opportune time to plan ahead.

Your self-directed retirement plan is no exception, and deserves a bit of your attention at this annual juncture.  Typically, there is not a lot of administrative action you will need to take with your plan at the current time, but charting out some of the things you will need to address over the coming year can simplify your life.

Some topics you may wish to consider include:

Tax Prep:  Your self directed IRA or Solo 401(k) will not likely have a tax filing in April, but it may be linked to other tax planning events such as plan contributions or distributions and business tax filings.  This is a good time to gather up and organize papers associated with your plan’s activities for the prior year.

Review your Financial & Estate Plans:  This is a good time of year to review your big picture financial & estate plans.  Are there any major changes that have occurred (or are on the agenda) such as a family move, birth or death in the family, marriage, job change, etc.?  These types of events may adjust your strategy for managing, contributing to, or taking distributions from your retirement plan.  You may also need to update estate planning documents and beneficiary forms.

Schedule Appointments:  If you want to speak with your CPA, CFP or other financial or tax advisor before April 15th, this is the time to book your appointment.

Compliance Schedule:  Your IRA LLC or Solo 401(k) plan has certain annual deadlines for compliance activities.  Now is a great time to put reminders of those events on your calendar so you are not taken by surprise, or worse, miss a deadline that ends up generating late fees or penalties.  Examples would include:

  • Annual IRA LLC valuation report to the IRA custodian.  Due by January 10th for the previous year.  If you have not done this for the prior year, do it now.  Don’t wait for a notice from your custodian.  Put a reminder in your calendar for early December so you will make easy work of the process next year-end.
  • The LLC annual report (renewal filing) for an IRA owned LLC.  This may have a set annual date or occur on the anniversary of the LLC filing, depending on the state.
  • State business franchise taxes where applicable.  Date varies by state, but is generally April 15th.  Refer to our state LLC compliance information page.
  • 5500-EZ for a Solo 401(k) plan over $250K in value.  Due the last day of July for the prior year.  You will need to know your year-end value, so be sure to gather that information now if you have not already.
  • If your IRA or 401(k) is required to file a 990-T return for UDFI or UBTI taxes, you may have to make quarterly estimated payments in addition to an April 15th filing date if the total tax due is likely to exceed $1,000.

None of these filings are done on your behalf by Safeguard Advisors, and maintaining these compliance activities is your responsibility.  If you have questions about your specific filing requirements, please contact your Safeguard consultant.

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