Annual Filing Requirement - What Owner-Only 401(k) Plans Need to Know

Do You Need to File Form 5500-EZ? Here’s What Owner-Only 401(k) Plans Need to Know

If you’re a business owner with a Solo Owner 401(k), there’s a key filing requirement you don’t want to overlook once your plan assets hit a certain threshold. 

Let’s break down who needs to file, when it’s due, what information you’ll need—and how to stay organized with your contributions each year.

What Is Form 5500-EZ and Who Needs to File It?

Form 5500-EZ is an informational return filed with the IRS to report details about retirement plans. It’s specifically used by Owner-only 401(k) plans that are not subject to ERISA (i.e., plans without common-law employees).

You're required to file Form 5500-EZ if your Solo 401(k) plan has more than $250,000 in assets at the end of the plan year (typically December 31st). 

Who must file:

• Owner-only businesses with a Solo Owner 401(k)

• Partnerships where only the partners (and spouses) participate

• Single-member LLCs with Solo 401(k) plans

• Plans that are terminating, regardless of asset size

Filing Deadlines and How to File

• Deadline: July 31st of the following year

  • For calendar-year plans, the 2024 Form 5500-EZ is due July 31, 2025.

• How to file:

  • You can file electronically via the IRS FIRE system or submit a paper form directly to the IRS.

  • In many cases, your tax preparer or retirement account custodian may file this on your behalf, but it’s your responsibility to confirm the filing is completed.

If You're a Client—We Can Help

If you're a tax client of ours, please reach out to let us know if your Solo Owner 401(k) plan exceeded $250,000 in assets at year-end. We can assist with preparing and filing Form 5500-EZ to ensure you're in compliance and avoid penalties.

What Information Do You Need to File Form 5500-EZ?

You’ll need to gather:

• Plan sponsor information (name, EIN, address)

• Plan details (plan number, type, effective date)

• Total plan assets at the beginning and end of the year

• Contributions made (employee deferrals, employer contributions, and rollovers)

• Distributions made, if any

• Investment year-end values

Tips for Tracking Annual Contributions

Staying organized throughout the year makes Form 5500-EZ filing a breeze. Here are a few habits to adopt:

📌 Separate employee vs. employer contributions

• Employee deferrals come from business draws or payroll.

• Employer contributions (profit-sharing) are calculated annually by the business.

📌 Use a spreadsheet or tracking tool

• Record all employee and employer contributions by date and amount.

• Include any catch-up contributions if you’re 50 or older.

📌 Monitor investment performance and year-end values

• Keep December 31st statements handy to verify asset totals.

Avoid Penalties—File on Time

Missing the Form 5500-EZ filing deadline can result in penalties of $250 per day, up to $150,000. If you’ve missed a prior year, the IRS offers a Delinquent Filer Voluntary Compliance Program (DFVCP) that can help minimize penalties—so don’t wait to get current.

Final Thoughts

Once your solo 401(k) reaches $250,000 in total assets, Form 5500-EZ becomes a necessary part of your tax compliance. Filing may seem small, but it plays a big role in protecting your retirement savings from IRS scrutiny.

If you're unsure whether this filing applies to you, or need help filing—we're here to help. Reach out to our team so we can assist you in meeting this important requirement.