If you have a solo 401(k) or one-participant retirement plan, the IRS requires you to file Form 5500-EZ.It’s just a simple two-page filing, but failing to submit it can trigger penalties of $250 per day, capped at $150,000.

🔹 You must file if your plan has more than $250,000 in assets at year-end.🔹 You must also file a final return once all assets are distributed—even if your balance was small.🔹 Deadlines generally fall on July 31 (or October 15 with an extension).

The good news: If you missed past filings, the IRS Late Filer Penalty Relief Program may help you avoid the penalties—by filing delinquent forms and paying a modest fee (capped at $1,500 per plan).

💡 Takeaway: Don’t ignore this requirement. Even small oversights in retirement plan filings can snowball into massive penalties.

Disclaimer: This content is provided for educational purposes only and is not legal, tax, accounting, or financial advice. Every situation is unique, so consult your own attorney, CPA, or financial advisor before making decisions based on this information.