What is form 5500-EZ? IRS Form 5500-EZ is an informational filing by one-participant plans to satisfy certain annual reporting and filing obligations imposed by the IRS. You are required to file a 5500-EZ once the plan assets in your Solo 401k reach $250,000 or greater. For example, if you have $30,000 in the bank and own a rental house worth $240,000, your plan assets total $270,000 and you need to file a 5500-EZ.
IRS Form 5500-EZ is an informational filing by one-participant plans to satisfy certain annual reporting and filing obligations imposed by the IRS.
Aggregate the total assets for all participants in the plan. If you have taken a participant loan, include the balance in your plan assets. You are required to file a 5500-EZ once the plan assets in your Solo 401k reach $250,000 or greater. For example, if you have $30,000 in the bank and own a rental house worth $240,000, your plan assets total $270,000 and you need to file a 5500-EZ.
The Form 5500-EZ must be filed via mail. It should be filled out and mailed to:
Department of the Treasury
Internal Revenue Service
Ogden, UT 84201-0020
The form must be postmarked by no later than July 31st. We recommend sending your form via USPS priority mail or another shipping method that provides you with a tracking number.
Only file one 5500-EZ per plan. Do not file per participant. Aggregate you and your spouse’s Solo 401k assets and holdings into one filing.
A one-time extension to file Form 5500-EZ (up to 2 ½ months) may be obtained by filing Form 5558 on or before July 31st. For help with this form, please contact your CPA. If you don’t have a CPA able to assist you, we can provide a list of CPAs familiar with the Solo 401k and 5500-EZ filing.
Most CPAs will agree you can use the tax assessor value, though some recommend a Broker Price Opinion (BPO). Please consult with your CPA on which valuation is right for you.
If you contributed money this year to be included in last year’s tax year and that contribution pushed your total value over $250,000 then you will need to file form 5500-EZ.
There is no fee to pay to file this form. It is an informational filing only.
The 5500-EZ is due on July 31st for the prior year. For example, if your plan assets exceeded $250,000 on December 31st last year, you need to file the 5500-EZ by July 31st this year.
You do not need to attach any extra documents when filing the 5500-EZ.
You may be eligible for penalty relief under Revenue Procedure 2015-32. Instructions for late filers may be found at: https://www.irs.gov/retirement-plans/penalty-relief-program-for-form-5500-ez-late-filers. We recommend utilizing your CPA to complete this filing.
You must submit the amended return using the paper Form 5500-EZ with the IRS.
No problem! Check out our network of great CPAs who are familiar with the Solo 401k and 5500-EZ filing.
Yes, your outstanding participant loan balance is still a part of your total plan value.
Per IRS instructions, Filers of Form 5500-EZ are not required to file schedules or attachments related to Form 5500 with the 2019 Form 5500-EZ. However, you must collect and retain for your records completed Schedule MB (Form 5500), Multiemployer Defined Benefit Plan and Certain Money Purchase Plan Actuarial Information, if applicable, and completed and signed Schedule SB (Form 5500), Single-Employer Defined Benefit Plan Actuarial Information, if applicable. Even though you do not have to file Schedule MB (Form 5500) or Schedule SB (Form 5500) with the 2019 Form 5500-EZ, you are still required to both perform an annual valuastion and maintain the funding records associated with plan funding in the same manner as a plan for which the applicable schedule must be filed.
Your Solo 401k plan is a defined contribution, not defined benefit plan. Therefore, Schedule SB (single-employer defined benefit plan) is not generally applicable. However, as your own Solo 401k plan administrator, you are still responsible for keeping the records and proper annual valuation of your Solo 401k plan.
DISCLAIMER: Please note that this guide is for educational and informational purposes only. The guide is not intended nor should not it be considered a replacement for tax, legal or investment advice. Always consult your tax advisor, CPA and/or legal counsel before filing.
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