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.
Summary
Yes, a final Solo 401(k) plan year can require Form 5500-EZ even when assets are under $250,000. The ordinary $250,000 threshold applies to ongoing one-participant plans. When all assets were distributed or transferred and the plan is ending, the sponsor should evaluate a final return marked final.
Final-year trigger is separate from the $250,000 ongoing-plan threshold.
| Ongoing plan | Usually no filing at $250,000 or lessAssuming no final year and no other trigger. |
|---|---|
| Final year | Can require Form 5500-EZTriggered by full distribution or transfer of all plan assets. |
| Product lane | Original on-time packet onlyLate, amended, and notice cases are outside scope. |
The question to ask first
Do not start with the year-end balance alone. Ask whether the plan was ongoing at year end or whether all assets were distributed or transferred during the plan year. A final year is a separate filing trigger.
Example
A Solo 401(k) had $82,000 on January 1 and all assets were rolled out by March 15. The year-end balance is $0, but the plan may still need a final Form 5500-EZ for the short final plan year.
What to keep
Keep beginning statements, transfer confirmations, distribution or rollover records, final account statements, plan termination notes, prior-year filed returns, and any extension record. The signer remains responsible for review and filing.
Common questions
Can I skip Form 5500-EZ if the final balance is $0?
No. A $0 final balance can be exactly why the plan is in a final-return lane. The sponsor still checks whether Form 5500-EZ is required for that final plan year.
Does this apply to an ongoing plan below $250,000?
Usually no for a simple ongoing one-participant plan, but the final-year rule is tested separately.
Can Solo 5500 Desk handle a late final return?
No. The product is for simple original on-time packets, not late, amended, or IRS correspondence cases.
Related guides
Solo 401(k) $250,000 threshold for Form 5500-EZ
How the IRS $250,000 one-participant plan asset threshold works for Solo 401(k) Form 5500-EZ filing.
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.
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 for this guide
Last reviewed: .