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Do I Have to File a Tax Return with a Solo 401(k) Plan?

No – a Solo 401(k) Plan is treated as a tax-exempt trust pursuant to Internal Revenue Code Section 401 and 501 and, thus, is not required to file an annual federal or state income tax return.

The Solo 401K Plan was initially created to provide sole proprietorships and small business owners with no full-time employees with an easy and cost effective retirement program. The IRS did not want small business owners to have spend considerable time or waste resources on complying with numerous administrative rules and regulations with respect to their retirement plan. As a result, the Solo 401(k) Plan was created. The solo 401(k) Plan is easy to operate. There is generally no annual filing requirement unless your solo 401(k) Plan exceeds $250,000 in assets, in which case you will need to file a short information return with the IRS (Form 5500-EZ). In other words, if a solo 401(k) Plan has less than $250,000 in asset value, the Plan would not be required to file the annual IRS Form 5500EZ.

For Solo 401(k) Plans that have assets with a value in excess of $250,000, the plan administrator is required to file the IRS Form 5500-EZ. The IRS Form 5500-EZ is due July 31 and can be filed manually (it does not have to be E-filed). Completing the IRS Form 5500-EZ is easy.  It is a short 2 page form and should take no more than 10 or so minutes to complete.  If you have established a Solo 401(k) Plan with IRA Financial Group, the Solo 401(k) Experts at the IRA Financial Group will help you complete the IRS Form 5500-EZ for no additional fee.

For questions on the Solo 401(k) Plan or the IRS Form 5500EZ please contact a Solo 401K Expert at 800-472-0646 or visit

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