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Form 5500 Filing - What values are needed to determine if the $250k threshold has been met?

When determining whether or not you must file From 5500 by July 31st (for plans with a December 31st year-end), it is important to know what funds must be included in the calculation to see if the $250k threshold has been surpassed.



To determine if the $250k limit has been met, you will need to consider:

  • The total plan assets for all participants' accounts under the Self-Directed Solo 401k plan must be added together to determine if the cumulative balance is over $250k. So, for example, the individual accounts for spouses and partners under the same plan will all need to be included in the calculation.

  • All traditional, alternative, and cash investments need to be added together to get the total value.

  • If you took a loan out of your solo 401k, the balance of the loan as of December 31st is treated as an asset, not a liability, so it must be included in the calculation to determine if the $250k threshold filing requirement has been met.

IMPORTANT: If you participate in multiple solo 401k plans, all the assets from all of the plans must be aggregated to determine if the $250k threshold has been met.


If you have determined that the plan's value is over $250k, here's some useful filing information:


In the past, there were two types of From 5500 that could potentially be filed: Form 5500-SF and Form 5500-EZ. "Beginning January 1, 2021, the Form 5500-SF can no longer be used to electronically file “one-participant” plan or foreign plan annual returns. Employers who sponsor one-participant plans or foreign plans must file Form 5500-EZ electronically using the Department of Labor’s EFAST2 filing system. Only employers not subject to the IRS e-filing requirements under Treas. Reg. 301.6058-2 may file paper Form 5500-EZ with the IRS." Source


The following information was pulled from the DOL's website: Help With The Form 5500-EZ - EFAST2 Filing (dol.gov)


"The Form 5500 Version Selection tool can help determine if you are eligible to file the Form 5500-EZ.


Beginning January 1, 2021, the Form 5500-EZ can be filed electronically using certain EFAST2-approved third-party software or using this website’s IFILE tool. The