Guides

Final Solo 401(k) plan year: when Form 5500-EZ still matters

Why a terminating one-participant plan can still have a Form 5500-EZ filing even below the normal asset threshold.

By Yann LephayPublished 2026-04-18 · Last updated 2026-05-02

Summary

A final plan year requires a Form 5500-EZ marked 'final return' even if combined assets are below $250,000. Example: a Solo 401(k) holding $90,000 that fully rolls over to an IRA on March 15, 2026 must still file a final 5500-EZ by October 31, 2026 (last day of 7th month after the short final plan year). Skipping the final return is the #1 reason solo plan owners receive an IRS CP-220 notice years later.

Final return trigger: all plan assets distributed or transferred.

Asset thresholdNot the only testA final year can create a filing task even below $250,000.
Ending assets$0 expected for a clean final returnThe signer should preserve statements supporting the transfer or distribution.
DeadlineLast day of the 7th monthFor a calendar-year final year, that normally means July 31.

Final year is a separate trigger

The ordinary $250,000 exception does not eliminate final-year reporting. If the plan has been fully wound down, the sponsor should confirm whether the final Form 5500-EZ needs to be filed and whether the form will show zero year-end assets.

Facts to verify before preparing

Before preparing, collect the plan termination date, beginning balance, distribution or rollover records, year-end statements, participant count facts, and any prior-year ending balance. The final return should not be prepared from memory.

What this software does not decide

Solo 5500 Desk does not decide whether terminating the plan was correct, whether a rollover was tax-free, or whether a distribution should have been reported differently. Those are professional review questions.

Common questions

Do I file 5500-EZ when closing my Solo 401(k)?

A final plan year can require Form 5500-EZ when all assets were distributed or transferred, even if the plan is below the ordinary $250,000 threshold.

What makes a plan year final?

The final Form 5500-EZ year is the year when all plan assets have been fully distributed or transferred and the plan no longer has assets to report at year end.

Does the app verify my rollover was correct?

No. It records user-entered facts for the packet. Tax treatment, rollover validity, distribution errors, and correction strategy are outside scope.

What if I forgot to check final return in a prior year?

That can create IRS notice or amendment issues. Solo 5500 Desk is for original on-time packets and does not handle amended returns or correspondence.

Related guides

Do I file Form 5500-EZ under $250,000 in a final plan year?

Why the final-year rule can override the usual under-$250,000 Solo 401(k) filing shortcut.

Rolled a Solo 401(k) to an IRA: do I need a final Form 5500-EZ?

What Solo 401(k) owners should check after rolling all plan assets to an IRA or another retirement account.

Do I need to file Form 5500-EZ for my Solo 401(k)?

The direct filing test for one-participant plans: asset threshold, final year, deadline, and filing method.

Official sources

IRS Form 5500-EZ filing noticesIRS states the $250,000 asset exception and the last-day-of-the-7th-month deadline. Official source reviewed for this MVP on June 11, 2026.IRS Instructions for Form 5500-EZOfficial instructions explain combined one-participant plan assets, final returns, and electronic filing requirements. Official source reviewed for this MVP on June 11, 2026.IRS one-participant plan project resultsIRS describes common one-participant plan filing mistakes, final-year filings, and failure-to-file penalties. Official source reviewed for this MVP on June 11, 2026.IRS mandatory electronic filing for Forms 8955-SSA and 5500-EZOfficial IRS guidance on the 10-return mandatory e-filing threshold and aggregation rules. Official source reviewed for this MVP on June 11, 2026.DOL EFAST2 filer helpOfficial DOL guidance on electronic filing, IFILE, credentials, and approved software requirements. Official source reviewed for this MVP on June 11, 2026.IRS Form 5558 extensionOfficial extension form context for Form 5500-series returns. Official source reviewed for this MVP on June 11, 2026.IRS Form 14704 late-filer transmittalOfficial transmittal schedule for the Form 5500-EZ Delinquent Filer Penalty Relief Program. Official source reviewed for this MVP on June 11, 2026.IRS Revenue Procedure 2015-32Official revenue procedure establishing the Form 5500-EZ late-filer penalty relief fee framework. Official source reviewed for this MVP on June 11, 2026.

Last reviewed: June 10, 2026.