5500 EZ in future years if assets decline

[Mike P.]

My solo 401(k) plan filed 5500 EZ the last two years after assets went above $250,000. After some market declines the asset went below the threshold. Do I still have to file a 5500EZ this year or not until assets go above 250,000 again (or the plan is terminated)?

Thanks!

Mike P.

Contact

[Mark Nolan]

While technically you are not required to file a Form 5500-ez if the fair market value (FMV) of the solo 401k plan dropped below $250,000 as of 12/31 of the prior year, so 12/31/2021 in your case, it is best to continue to file even if you are not required to do so. Reason being, the government may send you a letter asking you to confirm why you did not file.

Mark Nolan

Compliance Officer

Contact

1-800-489-7571 www.mysolo401k.net