Form 5500-EZ: Eligibility Requirements and Step-by-Step Filing Instructions

Table of Contents#

1. What Is Form 5500-EZ?
2. Form 5500-EZ Eligibility Requirements 2.1 Who Is Not Eligible to File 5500-EZ?
3. 2024 Filing Deadlines and Extensions
4. Step-by-Step Form 5500-EZ Filing Instructions
5. Common Mistakes to Avoid
6. What to Do If You Miss a Filing Deadline
7. FAQs
8. References

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What Is Form 5500-EZ?#

Form 5500-EZ is part of the joint IRS/Department of Labor (DOL) Form 5500 series, used to report financial and operational information about qualified retirement plans to federal regulators. The EZ variant is exclusively for small, one-participant retirement plans, and eliminates the need for most complex schedules required for the standard Form 5500 or Form 5500-SF.

Regulators use these filings to verify that plans comply with ERISA and tax code rules, including annual contribution limits, fair market value reporting, and proper distribution practices.

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Form 5500-EZ Eligibility Requirements#

You can file Form 5500-EZ only if your plan meets all of the following criteria, per IRS rules for 2023 and later plan years:

1. Plan type eligibility: Your plan is a one-participant plan, defined as:
   • A plan that covers only you (the business owner) and your spouse, if your spouse is a participant in the plan (regardless of ownership stake)
   • No non-owner employees are eligible to participate in the plan Or your plan is a non-U.S. foreign retirement plan with no U.S.-based participants that meets the small plan asset threshold
2. Asset threshold: Total plan assets equal $250,000 or more at the end of the plan year (this threshold was raised from$100,000 by the SECURE 2.0 Act of 2022) Or you are terminating the plan, regardless of total asset value (even plans with $0 in assets require a final 5500-EZ filing to close out with regulators)

Note: The $250,000 asset threshold applies per plan. If you hold multiple separate one-participant plans, each is evaluated individually for filing requirements.

Who Is Not Eligible to File 5500-EZ?#

You cannot use Form 5500-EZ if:

• Your plan covers non-owner employees eligible to participate
• Your plan covers multiple unrelated business partners (i.e., co-owners who are not spouses)
• Your plan is a multi-employer plan, multiple employer welfare arrangement (MEWA), or welfare benefit plan
• You are required to attach schedules not permitted with the 5500-EZ (excluding the Schedule SB for one-participant defined benefit plans)

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2024 Filing Deadlines and Extensions#

Form 5500-EZ is due on the last day of the 7th month following the end of your plan year:

• For calendar-year plans (the most common structure for small businesses), the 2023 plan year filing deadline is July 31, 2024
• If the deadline falls on a weekend or federal holiday, the due date moves to the next business day

You can request a 2.5-month automatic extension by submitting Form 5558 on or before the original filing deadline. For calendar-year plans, this extends the 2024 deadline to October 15, 2024.

For final (terminated) plan filings, the deadline is calculated based on your plan termination date, rather than the standard calendar year end.

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Step-by-Step Form 5500-EZ Filing Instructions#

As of 2024, all Form 5500-EZ filings must be submitted electronically through the DOL’s EFAST2 system; paper filings are only accepted for limited hardship exceptions. Follow these steps to file correctly:

Step 1: Gather Required Documentation#

Before you start filing, collect the following records:

• Plan year end financial statements listing the fair market value of all plan assets (stocks, bonds, cash, alternative investments, etc.)
• Records of total contributions (employer and employee) made during the plan year
• Records of total distributions and plan administrative expenses paid during the year
• Your business EIN, plan number (usually 001 for single-plan sponsors), plan name, and plan administrator contact information (this is almost always you as the business owner)

Note: SEP IRAs and SIMPLE IRAs are not subject to Form 5500-EZ filing requirements, even if they meet the $250,000 asset threshold. Only solo 401(k)s, one-participant profit sharing plans, and one-participant defined benefit plans require this filing.

Step 2: Register for EFAST2 Credentials#

Go to the official EFAST2 portal to register as a plan sponsor, and obtain your user ID and PIN. You may also authorize a third-party administrator (TPA) to file on your behalf, but you remain legally responsible for the accuracy of all submitted information.

Step 3: Complete Core Form Fields#

The 5500-EZ has 4 core sections to fill out:

1. Part I (Basic Plan Information): Enter your plan name, EIN, plan number, plan year start/end dates, business address, and plan administrator contact details. Check the "final return" box if you are terminating your plan.
2. Part II (Financial Information): Report total plan assets at the start and end of the plan year, total contributions received, total distributions paid, and total administrative expenses charged to the plan.
3. Part III (Eligibility Confirmation): Check the appropriate boxes to confirm your plan meets the one-participant requirements, has no eligible non-owner employees, and meets the asset threshold or is a final filing.
4. Part IV (Signature): Sign the form electronically to certify that all information is true, correct, and complete to the best of your knowledge.

Step 4: Attach Required Supplementary Documents#

Most solo 401(k) filers will not need to attach additional schedules. The only common supplementary document required is Schedule SB (Actuarial Information) for one-participant defined benefit plans.

Step 5: Submit and Save Your Confirmation#

Submit the form through the EFAST2 system, and save a copy of the official acceptance receipt for your records. The IRS recommends keeping all 5500-EZ filings and supporting documentation for at least 7 years after the filing date.

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Common Mistakes to Avoid#

1. Unnecessary filing: If your plan has less than $250,000 in assets and you are not terminating it, you do not need to file Form 5500-EZ.
2. Missing deadlines: Late filings can result in combined IRS and DOL penalties of up to $1,350 per day with no maximum cap.
3. Incorrect asset valuation: Always report the exact fair market value of all assets as of the plan year end date, not estimates or rounded values.
4. Forgetting final filings: Even if your plan has $0 in assets at termination, you must file a final 5500-EZ to close your plan with regulators, or you will receive non-filing notices for years after termination.
5. Filing the wrong form: If you add non-owner eligible employees to your plan, you must switch to filing Form 5500-SF or standard Form 5500, as you will no longer qualify for 5500-EZ.

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What to Do If You Miss a Filing Deadline#

If you have a delinquent 5500-EZ filing, the DOL’s Delinquent Filer Voluntary Compliance Program (DFVCP) allows you to submit late filings with capped penalties, rather than the unlimited daily penalties for non-compliance. For small one-participant plans, penalties are capped at $1,500 per delinquent plan year if you use the DFVCP.

To qualify for the program, you must submit all delinquent returns, pay the reduced penalty, and certify that you have not yet received a non-filing notice from the IRS or DOL. If you have already received a penalty notice, you may still request abatement if you can demonstrate reasonable cause for the late filing (e.g., serious illness, natural disaster, or administrative error).

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FAQs#

Q: Do I need to file Form 5500-EZ for my SEP IRA?#

A: No, SEP IRAs and SIMPLE IRAs are not subject to 5500 series filing requirements. Only solo 401(k)s, one-participant profit sharing plans, and one-participant defined benefit plans require this filing.

Q: My plan covers me and my business partner (who is not my spouse). Can I file 5500-EZ?#

A: No, plans covering unrelated co-owners do not qualify as one-participant plans, so you will need to file Form 5500-SF instead.

Q: I terminated my plan in March 2024. When is my final 5500-EZ due?#

A: Your plan year ended on the termination date (March 31, 2024), so your filing is due 7 months later on October 31, 2024. You can extend this deadline to January 15, 2025 with Form 5558.

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References#

1. Internal Revenue Service. (2024). About Form 5500-EZ, Annual Return of One-Participant (Owners and Their Spouses) Retirement Plan. Retrieved from https://www.irs.gov/forms-pubs/about-form-5500-ez
2. U.S. Department of Labor. (2024). EFAST2 Filing Information. Retrieved from https://www.dol.gov/agencies/ebsa/employers-and-advisers/plan-administration-and-compliance/reporting-and-filing/efast2
3. U.S. Department of Labor. (2024). Delinquent Filer Voluntary Compliance Program (DFVCP) FAQs. Retrieved from https://www.dol.gov/agencies/ebsa/about-ebsa/our-activities/resource-center/faqs/delinquent-filer-voluntary-compliance-program
4. SECURE 2.0 Act of 2022, Division T of Pub. L. 117-328.