Taxpayers sometimes become confused about who must file IRS Form 5500-EZ. Complete rules are outlined below. Talk to a local tax preparer if you have questions.

If the plan had more than $250,000 in assets at the end of the plan year and any other necessary requirements are met, Form 5500-EZ must be filed. Note: A taxpayer who has more than one one-participant plan must combine the plans’ assets for purposes of the $250,000 test.

All one-participant plans should file the Form 5500-EZ for their final plan year indicating that all assets have been distributed. The final plan year is the year in which distribution of all plan assets is completed. Check the box at Part 1, A(3) of Form 5500-EZ if a “final return” and all assets under the plan(s) (including insurance/annuity contracts) have been distributed to the participants and beneficiaries or distributed to another plan.

Effective for plan years beginning after 2019, a one-participant plan required to file an annual return can file Form 5500-EZ electronically using the EFAST2 filing system or file Form 5500-EZ on paper with the IRS. For an amended 5500-EZ, if the original return was filed electronically the amended return must also be filed electrically. If Form 5500-EZ was previously filed on paper, the amended return must be submitted using the paper Form 5500-EZ that corresponds to the original year of filing. (Instructions, Form 5500-EZ)

Form 5500-EZ must be filed electronically if the filer is required to file at least 250 returns of any type with the IRS, including Forms W-2 and 1099, income tax returns, employment tax returns, and excise tax returns, during the calendar year that includes the first day of the applicable plan year. For more information on filing the Form 5500-EZ using the EFAST 2 system, see the instructions for Form 5500-EZ and the EFAST2 website at www.efast.dol.gov