What Is IRS Form 5500-EZ?
IRS Form 5500-EZ is an annual information return used to report certain one-participant retirement plans, such as solo 401(k) plans and other owner-only plans. It provides the IRS with details about plan assets, contributions, and compliance.
This form applies to plans that cover only the business owner (and spouse, if applicable).
What Is Form 5500-EZ Used For?
Form 5500-EZ is used to:
- Report annual activity of eligible one-participant retirement plans
- Disclose plan assets, contributions, and distributions
- Satisfy federal reporting requirements for owner-only plans
- Maintain compliance for tax-favored retirement arrangements
It is a reporting form, not a tax payment form.
Who Is Required to File Form 5500-EZ?
You generally must file Form 5500-EZ if:
- You maintain a one-participant retirement plan (e.g., solo 401(k))
- The plan assets exceed IRS filing thresholds, or
- The plan is terminated during the year
Businesses with common-law employees typically do not use Form 5500-EZ and must file other versions of Form 5500 instead.
When Should You File Form 5500-EZ?
Form 5500-EZ is generally due:
- By July 31 following the end of the plan year
- Extensions may be available when filed with an approved extension
Late filing can result in penalties, though relief programs may apply in certain cases.
IRS Notices This Form Is Commonly Used With
Issues related to Form 5500-EZ may involve IRS correspondence such as:
- Penalty notices for late or missing filings
- Compliance inquiries related to retirement plan reporting
- Notices requesting clarification of plan information
Form 5500-EZ is often reviewed when retirement plan compliance is questioned.
When NOT to Use Form 5500-EZ
Do not use Form 5500-EZ if:
- The plan covers employees other than the owner and spouse
- The plan is required to file the standard Form 5500 or 5500-SF
- You are reporting non-qualified retirement arrangements
Using the wrong form can trigger compliance issues.
What Information Is Required on Form 5500-EZ?
Form 5500-EZ generally requires:
- Plan and sponsor identifying information
- Beginning and ending plan asset values
- Contributions and distributions during the year
- Plan termination details, if applicable
Accurate records are important for compliance.
Where and How to File Form 5500-EZ
Form 5500-EZ may be filed:
- By mail to the IRS, or
- Electronically through approved filing systems, if applicable
Filing methods depend on plan size and IRS guidance for the year.
What Happens After You File Form 5500-EZ?
After filing:
- The IRS records the plan’s annual activity
- The filing may be reviewed for compliance
- Missing or incorrect filings may lead to penalties or follow-up notices
Maintaining timely filings helps preserve the plan’s tax-favored status.
Related IRS Forms
Forms commonly associated with retirement plan reporting include:
- Form 5500 / 5500-SF – Annual Return/Report of Employee Benefit Plan
- Form 1099-R – Distributions from pensions and retirement plans
- Form 5330 – Return of Excise Taxes Related to Employee Benefit Plans
Summary
IRS Form 5500-EZ is used to report annual activity for one-participant retirement plans, such as solo 401(k)s. Filing on time and accurately helps maintain compliance and avoid penalties.
Scope Note
This page explains the purpose and general use of IRS Form 5500-EZ. It does not provide legal or tax advice.