An IRS Form 5500 is an annual report filed with the U.S. Department of Labor. It differs from a tax return. Form 5500 is an informational report containing financial information about a 401(k) plan. It serves more than one purpose and provides disclosures for plan participants and beneficiaries.
What Information Does Form 5500 Include?
Basic information captured includes:
- Plan name
- Starting date
- Sponsor information
- Participant information
- Administrator details
- Assets and contributions
What Type Do I Need?
There are several form options when it comes to filing.
- 5500 – Annual Return/Report of Employee Benefit Plan
- 5500-SF – Annual Return/Report of Small Employee Benefit Plan
- 5500-EZ – Annual Return of a One-Participant Retirement Plan or a Foreign Plan
One-participant plans or foreign plans must file Form 5500-EZ. You can file electronically as of January 1, 2021.
This is the designated form for plans with only one participant. It is also referred to as a Solo 401(k) Plan. A one-participant plan covers a business owner with no employees. But, the plan can cover a business owner and their spouse or business partner. This only applies when the partners and their spouses are the only plan participants. This form is filed when the plan’s asset value is over $250,000 as of December 31 of the previous tax year.
How Is Form 5500-EZ Filed?
Form 5500-EZ is due the last day of the seventh month after the plan year ends, or typically July 31. The IRS provides extensions for those who file a request before July 31. This will avoid any late penalties issued for late filings.
Form 5500-EZ is available on the IRS website. The IRS now also allows you to file electronically through EFAST2. If you are not subject to the IRS e-filing requirements, you may file on paper with the IRS. For complete filing instructions, visit the IRS’s website.
Midland Forms has a designated team who can help you complete the timely filing of your Form 5500-EZ and simplify the process. For more information, don’t hesitate to contact us at (239) 472-0074.