Solo k Tax ID

[Guest bouncingsoul]

Am I correct in saying that a sole proprietor would need to apply for a Tax ID when establishing a 401(k)?

Dave

[Lame Duck]

I believe that is correct. It is my understanding that the IRS requires a federal EIN to file Form 5500.

[Guest insurancelaw]

Very easy to do. Fill out SS-4 on line and your done.

[SMB]

My understanding is that such an SP (assumes no employees) would need 2 TINs - one as an "Employer/Plan Sponsor" and a second "trust TIN" - as the Plan's associated trust is a legal entity that is separate and distinct from the business.

The "trust TIN" is used as the taxpayer i.d. for trust investment accounts, for 1099-R distribution reporting (i.e., the trust - not the business - is the "payer") and on Schedules P & R of the IRS Form 5500.