What is Form 5500?

An Internal Revenue Service (IRS) Form 5500 is an annual report filed with the U.S. Department of Labor. The U.S. Department of Labor, the Pension Benefit Guaranty Corporation, and the IRS developed this reporting form jointly to provide a way to satisfy the annual reporting requirements under Title I and Title IV of ERISA and the Internal Revenue Code.

Do I Need to File Form 5500?

In general, retirement plans of all types require a Form 5500 annually. It differs from a traditional tax return as this specific form is an informational report containing the plan’s financial and basic plan information for a 401k tax reporting. It is meant to serve more than one purpose and provides disclosures for plan participants and beneficiaries.

What Information is Reported on Form 5500?

There is basic information captured by Form 5500 which includes:

  • Plan name
  • Starting date
  • Sponsor information
  • Participant information
  • Administrator details
  • Assets and contributions

What Type of Form 5500 Do I Need?

There are several form options when it comes to filing your Form 5500. There is a brief description of the different forms below along with which form may be best based on your plan. 

  • Form 5500-EZ - Annual Return of a One-Participant Retirement Plan or a Foreign Plan. This is for all one-participant plans which include plans with owners, business partners, and/or spouses.  One-participant plans or foreign plans must file Form 5500-EZ and can do so electronically as of January 1, 2021.
  • Form 5500-SF - Annual Return/Report of Small Employee Benefit Plan. This form may be used for smaller plans (less than 100 participants) regardless of the combined asset totals of the employer’s plans.
  • Form 5500 - Annual Return/Report of Employee Benefit Plan. This would be for large plans with multiple participants regardless of the combined asset totals of the employer’s plans.

What is Form 5500-EZ?

IRS Form 5500-EZ is the designated form for plans with only one participant. It is also referred to as a Solo 401(k) Plan. A one-participant plan covers a business owner with no employees. 

However, the plan can cover a business owner and their spouse or business partner. This only applies when the partners and their spouses are the only plan participants. This form is filed when the plan’s asset value is over $250,000 as of December 31 of the previous tax year. 

The $250,000 amount is determined by a few factors. The total plan assets for all participants under the 401(k) plan must be added together to determine a cumulative balance.

How Do I File a Form 5500-EZ?

Form 5500-EZ is due the last day of the seventh month after the plan year ends, or typically July 31. The IRS provides extensions for those who file a request before July 31. This will avoid any late penalties issued for late filings.

Form 5500-EZ is available on the IRS website. As of January 2020, the IRS now allows you to file electronically through EFAST2. If you are not subject to the IRS e-filing requirements, you can file a paper Form 5500-EZ and send it by mail. You can send it directly to the IRS at the following address:

Department of the Treasury

Internal Revenue Service

Odgen, UT 84201-0020

Although we recommend keeping them for your own records, you do not need to include any kind of statement or additional documentation with your Form 5500-EZ. For complete Form 5500-EZ filing instructions, visit the IRS’ website.

Equity Doc Prep has a designated team who can help you complete the timely filing of your Form 5500-EZ and simplify the process. For more information, don’t hesitate to contact us at (239) 895-9732.