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.
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 threshold | Not 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. |
| Deadline | Last 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.