Taxation of 401K Investment Income

I wish to run my own investment fund for my Solo 401K. I did not like the limitations etc. of using an existing mutual fund, etc. And I have investment experience, etc.
I've formed a Corporation, deposited contributions into it, and now need to file a return, I am curious how the income is treated as all income is tax deferred, but I'm not sure how it should appear on the 1120.
Also, was using a Corporation entity the smartest approach? Should I have formed a Trust? The problem there I thought was you'd have to file a 1041 each year and send out K1s...but again all income is tax deferred until withdrawn from the 401K so that didn't seem to be the right vehicle to use.
Thanks in advance for your advice. Also, I have extensive Tax experience...just not here so if you could point me in the direction of the right IRS sections, etc. or any links I would also appreciate it.
Alta Investments
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Bzzzzzzzzzzzzzzzzt.
Game over.
401 Qualified pension, profit-sharing, and stock bonus plans. (a) Requirements for qualification. A trust created or organized in the United States...... (1) if contributions are made to the trust by....... (2) if under the trust instrument it is......... (3) if the plan of which such trust is a part.......
You most likely have a full taxable distribution if there were any rollover/transfer money, and anything you thought you were contributing to a pension was nothing more than you putting money into a corporation you also own.
You most likely have violated dozens of pension laws (or maybe none at all because you don't have a pension).
Anything you thought you were defering isn't defered for tax purposes.

Ummmm............no.
You should have talked to an attorney - first.
You need to talk to an attorney - N O W - like by 8:30 Monday morning.
Preferably one that has extensive knowlege in pension laws.
A pension "trust" doesn't file a 1041.
Look, there are dozens of companies that set these up for you, get the IRS approval for the plan, prepare the legal documents, and will keep them current for a reasonable fee. You can still make all the investment decisions and direct the investment of the plan assets according to the plan and the tax code.
This is NOT a do it yourself business. Get the paid help you need.

So you should know not to delve into areas without doing the research first.
--
Paul Thomas, CPA
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wrote:

OK, so you create a trust... What tax return does the trust file if not a 1041?
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You don't create a "trust", as in a 1041 filing "trust".
You create a qualified *plan* (emphasis in "qualified"), and you hold the assets in "trust".
Qualified plans file Form 5500 in most cases (certain Plans do not need to file).
You probably do not have a qualified plan, and you probably didn't get it approved by the IRS.
It is quite obvious by now that you don't have a clue as to what you are doing.
Again, this is not a game to play by yourself.
There are probably people in your community (or the next biggest community down the road) that specialize in qualified plans. Find them and get help. You currently have a mess, and I doubt you can fix it by yourself.
--
Paul Thomas, CPA
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wrote:

Thank you for the information. Actually, I did create a plan, a 401K Solo plan. And no, I did not transfer the assets to a Corporation, sorry what I was trying to find out is if I could, as I have an unused Nevada Corp that I was considering transferring the Assets into, but as you've remined me, I can't do that.
I did all of the paperwork (Created a Trust Agreement, and Adoption of Plan), but wondered if I had any further tax return info that needed to be filed. Under 401K Solo, I've read where we are not required to file form 5500 unless assets exceed $100,000, Is that correct? It is only me I have no employees, I file a Schedule C for my business on my 1040.
Thanks again for your input.
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