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IRS Form 5500-EZ – Annual Return of A One Participant (Owners/Partners and Their Spouses) Retirement Plan or A Foreign Plan – is a critical annual filing requirement for owners of solo or one-participant retirement plans, such as Solo 401(k)s, as well as certain foreign plans. This form ensures compliance with Internal Revenue Code reporting obligations and helps the IRS monitor retirement plan assets. Failing to file on time can result in significant penalties, making it essential for business owners and self-employed individuals to understand the rules.
What Is Form 5500-EZ?
Form 5500-EZ, titled “Annual Return of A One-Participant (Owners/Partners and Their Spouses) Retirement Plan or A Foreign Plan,” is used to report information about retirement plans that cover only the business owner(s) and their spouses, or certain foreign plans not subject to ERISA Title I reporting. It satisfies filing obligations under Internal Revenue Code section 6058(a).
Unlike the full Form 5500 (for larger plans) or Form 5500-SF (for small plans with employees), Form 5500-EZ is specifically for “one-participant plans.” Since 2021, one-participant plans can no longer use Form 5500-SF.
Who Must File Form 5500-EZ?
You must file Form 5500-EZ if your plan is a one-participant plan and meets these criteria:
- One-Participant Plan Definition: Covers solely the business owner (and spouse) who owns the entire business, or partners (and their spouses) in a partnership. This includes Solo 401(k)s, profit-sharing plans, or defined benefit plans for self-employed individuals. (2% S-corporation shareholders are treated as partners.)
- Asset Threshold: Required if total plan assets exceed $250,000 at the end of the plan year (combine assets from all one-participant plans maintained by the employer). No filing is needed if assets are $250,000 or less, unless it’s the final plan year (plan termination).
- Foreign Plans: Certain plans maintained outside the U.S. primarily for nonresident aliens, if the employer deducts contributions on a U.S. tax return.
Always file for the final plan year, regardless of assets.
IRS Form 5500-EZ Download and Printable
Download and Print: IRS Form 5500-EZ
Filing Requirements and Deadlines for 2025
- Due Date: Last day of the 7th month after the plan year ends (e.g., July 31, 2026, for calendar-year 2025 plans).
- Extension: File Form 5558 for an automatic 2.5-month extension.
- Electronic vs. Paper Filing:
- Electronic filing is available via the DOL’s EFAST2 system (recommended for confirmation of receipt).
- Mandatory Electronic Filing: For plan years beginning on or after January 1, 2024 (including 2025), if you file at least 10 returns of any type with the IRS in the calendar year, you must file Form 5500-EZ electronically via EFAST2.
- Otherwise, paper filing with the IRS is allowed.
- Waivers for undue hardship are available on a case-by-case basis.
- Where to File:
- Electronic: Through EFAST2 (efast.dol.gov).
- Paper: Mail to the IRS (address in instructions).
Note: Information from one-participant or foreign plans is not publicly disclosed, unlike larger plan filings.
How to Complete and File Form 5500-EZ
The form is relatively straightforward, requiring basic plan information, assets, liabilities, and participant counts. Key sections include:
- Plan identifier, employer details, and asset values.
- For defined benefit plans, retain (but do not attach) Schedule SB if applicable.
Use the current year’s form and instructions from IRS.gov. For 2025 plan years, refer to the latest IRS instructions (typically released early in the year).
Penalties for Late or Non-Filing
Penalties can reach $250 per day (no maximum in some cases). However, relief options include:
- IRS Late Filer Penalty Relief Program: File paper returns with specific markings for reduced or waived penalties.
- Avoid penalties by filing on time or seeking extensions.
Key Changes and Tips for 2025
- The electronic filing threshold dropped to 10 returns starting in 2024, affecting more filers in 2025.
- Always check for updates on IRS.gov, as forms and rules can change annually.
- If your plan grows to include employees, switch to Form 5500 or 5500-SF.
For official guidance, download the latest Form 5500-EZ and instructions from the IRS website (irs.gov/forms-pubs/about-form-5500-ez). Consult a tax professional for personalized advice, especially if combining plans or dealing with loans/investments.
Staying compliant with Form 5500-EZ protects your retirement plan and avoids costly IRS penalties. File accurately and on time!