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⚠️ Your Retirement Plan Could Cost You $150,000 in Penalties ⚠️

⚠️ Your Retirement Plan Could Cost You $150,000 in Penalties ⚠️

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.