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Form 5500EZ: Solo 401k Plans Filing Options

In this brief video Ann Junkins of the Internal Revenue Services discusses the filing options of one-participant Solo 401k plan. The options include Form 5500EZ as well as electronic filing).  One participant plan is the simplified version of the 401(k) plan often referred to as Individual K or Solo 401k.

Electronic Filing IRS Video

IRS Form 5500EZ

Retirement plans that cover only the owner of the business and his or her spouse are called “one-participant plans.”  One-participant plan sponsors can pick between couple ways of filing required annual returns.

One way is to file an electronic Form 5500-SF with the Department of Labor’s EFAST2 system. The other way is to file a paper Form 5500EZ, and then mail it to Internal Revenue Services.  The Form 5500EZ is the simple 2-page informational return.

All owner-only (or Solo 401k) plan participant are encourages to choose the electronic filing option. Electronic filing makes the process easier, significantly increase the speed of processing and also increases accuracy of the data submitted.

To help encourage electronic filing, beginning January 1, 2012, your one-participant plan filings will not be made available to the public through the EFAST2 Filing Search Application. While the information contained in the filing remains publicly disclosable, it will be excluded from online access. We hope that one-participant plan filers will now submit their returns electronically through EFAST2 using the Form 5500-SF.

Those who wish to learn more about Individual Retirement Plans for small businesses are encouraged to contact Solo 401k Providers.  Keep in mind that not all Providers are the same.  Some providers don’t offer plans that come with all the features that are available with the Self-Directed Solo 401k Plan with Checkbook Control.

If you have any questions on one-participant plans, please visit the Form 5500EZ Corner at www.irs.gov/retirement.