Solo 5500 Desk vs CPA or EA filing service
A CPA or EA charges $150-$350 to prepare a routine one-participant Form 5500-EZ. Solo 5500 Desk preps the same packet for $49 in about 10 minutes when records are ready. Hire a CPA when you need representation, plan correction, late-filer relief, or controlled-group analysis. Use Solo 5500 Desk when the case is original, on-time, owner-only, and below complexity triggers.
Decision rule
Routine on-time owner-only filing → Solo 5500 Desk. Notice, late filing, employees, or complex assets → CPA/EA.
| Criterion | Solo 5500 Desk | CPA or EA filing service |
|---|---|---|
| Price per plan year | $49 flat | $150-$350 (often $250 baseline) |
| Turnaround time | ~10 minutes when records are ready | 1-3 weeks (depends on intake queue) |
| Scope coverage | Original on-time one-participant Solo 401(k) only | Full Form 5500 series, late filings, amendments, IRS notices |
| EFAST2 transmission | No (user files via IFILE or paper) | Yes (CPA acts as approved filer) |
| IRS representation | No | Yes (CPA, EA, attorney) |
| Plan correction (DFVCP, EPCRS) | No | Yes |
| Annual passport for next-year reuse | Yes | Usually a re-quote each year |
| Stores credentials (Login.gov, EFAST2 PIN) | Never | Often (Power of Attorney) |
Common questions
Is a CPA required to file Form 5500-EZ?
No. Form 5500-EZ is a self-prepared return that the plan sponsor (often the owner) signs. A CPA is recommended when the case is complex, late, or under IRS notice.
Will the IRS reject a self-prepared Form 5500-EZ?
No. The IRS accepts self-prepared returns. Rejections come from missing required fields, incorrect EIN/plan number, or wrong year-end values — not from the absence of a paid preparer.
Does using Solo 5500 Desk make me look like a DIY filer to the IRS?
No. The IRS does not flag returns based on preparation tool. The signature is the sponsor's; the packet is just an organized worksheet you copy from.
Can I use Solo 5500 Desk for the routine years and a CPA for unusual years?
Yes — that is the recommended pattern. Use the $49 packet for ordinary years and engage a professional for the year you terminate the plan, hire an employee, miss a deadline, or receive a notice.