For self-employed individuals and business entities that have a Solo 401(k) as their company retirement plan, don’t forget to file with the IRS your company Form 5500-EZ if the plan’s asset value is $250,000 or greater at the end of the 2023 calendar year. If at that value or higher, filing a Form 5500-EZ, Annual Return of A One-Participant Retirement Plan, is required. The Form 5500-EZ tax return filing due date is July 31, 2024 for a solo 401(k) plan with a calendar year-end of December 31, 2023. Missing this due date and filing late results in significant penalties – $250 per day, so be sure to check the Plan’s Asset Value as of December 31, 2023 in order to be in filing compliance!!
However, if your Form 5500-EZ filing requirement has been missed for past years, the IRS will allow retirement plans to get into compliance and will generally waive prior year penalties that would be assessed for the late filings by applying for the Delinquent Filer Voluntary Compliance Program (DFVCP). Prior years’ missed Form 5500-EZ filings must be submitted as part of the program and there is a fee capped at $1,500 for most small plans.
If you cannot get the Form 5500-EZ filing completed by the July 31, 2024 due date, be sure to file for an extension of time by submitting Form 5558.