Form 5500-EZ, Annual Return of One-Participant (Owners and Their Spouses) Retirement Plan applies to one-participant or “owner-only” plans if the plan has assets of $250,000 or more at the end of the plan year. Plans subject to the Form 5500-ez filing requirement include solo 401k plans and defined benefit plans.
Please let me know if the form 5500-ez is still needed as the total amount is now below $250,000. So is it needed since at one point in 2021 the value of my solo 401k plan was over $250,000?
A Form 5500-EZ is not required to be filed if the balance of the solo 401k was under $250,000 during the plan year so as of 12/31. It does not matter if the solo 401k was over $250,000 during the year prior to 12/31.
Note: If the solo 401k was closed during the year, a final Form 5500-EZ is required to be filed regardless if the value of the solo 401k plan was under $250,000 at time of closing or during the year.
Each day I speak with energetic entrepreneurs looking to take the plunge into a new venture and small business owners eager to take control of their retirement savings. I am passionate about helping others find their financial independence. Having worked for over 20 years with some of the top retirement account custodian and insurance companies I have a deep and extensive knowledge of the complexities of self-directed 401ks and IRAs as well as retirement plan regulations.
Learn more about Mark Nolan and My Solo 401k Financial >>
We help our clients take control of their retirement money. Our products and services provide our clients the freedom to invest their retirement savings in their own business as well as alternative investments such as real estate, private companies, promissory notes, precious metals, tax liens and equities. Learn more