Single(k) plans follow the same general IRS distribution rules as traditional 401(k) plans but with some key differences in how distributions are processed and reported due to the plan’s self-directed nature. This article will help you understand your responsibilities as a Single(k) plan sponsor when it comes to distributions and IRS Form 1099-R reporting.

Important Note: This article does not apply to Single(k) Plus plans. Single(k) Plus plans are record kept by Ubiquity, and all distributions from those plans must be initiated through the MyUbiquity.com portal.

Who This Applies To

This information is for sponsors of standard Single(k) (solo 401(k)) plans where Ubiquity is not the recordkeeper. Ubiquity serves only as the plan document provider for these plans.

If you are a self-employed individual who has adopted a Single(k) plan and you directly manage assets through a brokerage account or trust account, the distribution and tax reporting responsibilities described here apply to you.

How 401(k) Distributions Work in a Single(k) Plan

Single(k) plans are subject to the same IRS distribution rules as other 401(k) plans:

  • Distributions are generally allowed upon:
    • Reaching age 59½
    • Retirement or separation from self-employment
    • Disability
    • Death
    • Certain plan termination scenarios
  • Early distributions (before age 59½) may be subject to an additional 10% IRS penalty unless an exception applies.

As a sponsor of a Single(k) plan, you are responsible for initiating and processing the distribution directly through your plan’s custodian or brokerage account provider. Ubiquity does not process distributions for these plans.

Who Issues Form 1099-R for a Distribution?

IRS Form 1099-R is required to report all 401(k) distributions, including those from Single(k) plans. This form must be provided to the IRS and to the individual who received the distribution.

You Must Determine Who Will Issue the 1099-R:

  • Brokerage or Custodian-Provided Reporting:
    • Many brokerage firms (e.g., Fidelity, Charles Schwab, TD Ameritrade) will issue Form 1099-R automatically when a distribution is processed through your account.
    • Check with your custodian to confirm whether they provide this service.
  • Self-Reporting by Plan Sponsor:
    • If your brokerage or custodian does not generate Form 1099-R, you as the plan sponsor are responsible for ensuring this form is prepared and filed with the IRS

Need Help Preparing Form 1099-R? Ubiquity Can Assist for Free

If your custodian will not issue a 1099-R, Ubiquity can prepare the form at no cost. To request this service:

What You Need to Do:

  1. Email us at singlek@myubiquity.com and request assistance with 1099-R reporting.
  2. We’ll send you a questionnaire that must be completed in full.
    • This includes information such as the participant’s details, type of distribution, tax withholding, and the source of funds.
  3. Submit the completed questionnaire as early as December 2025 for 2025 tax year filings.
  • We begin preparing 2025 1099-Rs monthly starting in January 2026.

Important Dates for 2024 1099-R Reporting:

  • If we receive your completed questionnaire before January 30, 2025, we will:
    • Prepare and transmit your 1099-R by January 30, 2025.
    • Email you a copy of the form for review.
    • Automatically file your 1099-R with the IRS on March 14, 2025.

Failure to file a 1099-R can result in:

  • IRS penalties for late or missed filings
  • Tax complications for the individual who received the distribution
  • Please review your form upon receipt and notify us of any corrections by March 10, 2025. 
  • We will prepare 2024 1099-Rs on a monthly basis for requests received after April 15, 2025.
  • Incomplete submissions may result in delays, and forms will not be filed until all required information is provided.
  • Increased audit risk for your plan

What Happens if You Don’t File the 1099-R?

To remain compliant, it’s critical that all distributions are reported either by your brokerage or through timely submission to Ubiquity.

Summary of Action Steps

  • ✅ Confirm with your brokerage/custodian whether they issue 1099-Rs.
  • ✅ If they don’t, contact Ubiquity to request preparation assistance or work with your tax preparer to generate and file a 1099-R.
  • ✅ Complete and return the 1099-R questionnaire in full.
  • ✅ Review your 1099-R when provided and report any corrections by March 10.
  • ✅ Please don’t submit 2025 1099-R requests before December 2025.

Need Help?

If you have questions about a 1099-R or would like to request that we prepare one for you, please email us at singlek@myubiquity.com.