Solo 401k Plan Form 5500-EZ IRS Relief Program

A solo 401k is for owner-only businesses and is not always required to file a Form 5500-EZ: Annual Return of a One-Participant (Owners/Partners and Their Spouses) Retirement Plan or A Foreign Plan.

The solo 401k plan must begin filing an annual Form 5500-EZ when the total value of the plan assets exceeds $250,000 at the end of the plan year. Regardless of plan asset value, an owner-only business must file a Form 5500-EZ to report the final plan year of the plan. For more, see the Instructions for Form 5500-EZ. 

For plans where the Form 5500-EZ is not filed timely, the IRS began allowing in 2015 owner-only businesses to correct late Form 5500-EZ filings. See Revenue Procedure 2015-32. Prior to this revenue ruling, later filers faced still non-fling penalties of $25 per day, up to $15,000 for each late Form 5500-EZ, plus interest, and $1,000 for each late actuarial report (for a defined benefit plan, if needed). 

However, certain criteria must be met in order to qualify to file under the Form 5500-EZ correction program.

To qualify to file Form 5500-EZ under the  penalty relief program, the business owner must meet the following criteria:

 from the IRS);

2. submits all delinquent returns for a single plan together;

3. prepares a paper Form 5500-EZ for each delinquent year, including any required schedules and attachments, if any. Use the Form 5500-EZ return that applied for the delinquent plan year. However, if the return is delinquent for a year prior to 1990, use the Form 5500-EZ for the current year. (See prior year Forms 5500-EZ);

4. writes in red letters at the top of each paper return: “Delinquent Return Filed under Rev. Proc. 2015-32, Eligible for Penalty Relief”;

5. attaches a completed one-page transmittal schedule (Form 14704) to the front of each late return;

6. pays the required fee of $500 per delinquent return, up to $1,500 per plan. Make checks payable to “United States Treasury”; and

7. mails the returns to the following address (Note: Electronically filed delinquent returns are not eligible for penalty relief):

First class mail:

Internal Revenue Service

1973 North Rulon White Blvd.

Ogden, UT 84404-0020

Private delivery services:

Internal Revenue Submission Processing Center

1973 North Rulon White Blvd.

Ogden, UT 84404

To determine if your solo 401k plan is required to file a Form 5500-EZ as well as common FAQs, .