Solo 401(k) $250,000 threshold for Form 5500-EZ
How the IRS $250,000 one-participant plan asset threshold works for Solo 401(k) Form 5500-EZ filing.
Summary
The Solo 401(k) $250,000 threshold is measured at year end across all one-participant plans maintained by the same employer. If the combined total is more than $250,000, Form 5500-EZ is generally required for each one-participant plan. If the combined total is $250,000 or less, an ongoing plan usually does not file, unless it is the final plan year.
The $250,000 threshold is combined across one-participant plans, not tested plan-by-plan.
| Threshold | More than $250,000Measured using combined end-of-year one-participant plan assets. |
|---|---|
| Not per plan | Aggregate same-employer one-participant plansA small second plan can push both plans into the filing lane. |
| Exception to exception | Final returnA final plan year can require Form 5500-EZ even below $250,000. |
Use the end-of-year combined asset number
Start with the year-end value for this Solo 401(k), then add the year-end assets of any other one-participant plans maintained by the same employer. The test is not per brokerage account, per participant, or per plan in isolation.
Example: two small plans can still trigger filing
If Plan A has $200,000 at year end and Plan B has $53,000 at year end, the combined one-participant plan asset total is $253,000. That is over the IRS threshold, so the sponsor should evaluate Form 5500-EZ for each one-participant plan rather than assuming each plan is under the limit.
Final year is checked separately
The threshold does not remove the final-return rule. If all plan assets were distributed or transferred during the final plan year, the sponsor should evaluate a final Form 5500-EZ even when the ending combined asset amount is at or below $250,000.
What Solo 5500 Desk prepares
Solo 5500 Desk captures the threshold facts, final-year flag, filing-method warning, source-record checklist, Form 5500-EZ answer packet, and annual passport. The user reviews the packet and files through the official paper or EFAST2 path.
When to use a professional
Use a CPA, EA, attorney, TPA, or official IRS/DOL instructions when asset values are hard to determine, the case is late or amended, there is an IRS notice, the business has non-owner employee issues, or controlled group and plan-administration questions are involved.
Common questions
Is the Solo 401(k) $250,000 threshold per account?
No. The IRS threshold is based on the combined end-of-year assets of the one-participant plan and any other one-participant plans maintained by the same employer.
Do I file Form 5500-EZ at exactly $250,000?
The ordinary annual filing trigger is more than $250,000 in combined one-participant plan assets at year end. A final plan year can still require a return at or below that amount.
What happens if I have two one-participant plans?
Add the end-of-year assets of all one-participant plans maintained by the employer. If the combined total is over $250,000, each plan in that lane may need its own Form 5500-EZ.
Can Solo 5500 Desk value hard-to-price assets for the threshold?
No. The product expects source-supported year-end statement values. Private investments, employer real estate, hard-to-value assets, and nonzero liabilities are outside scope.
Related guides
Solo 401(k) owner-only eligibility for Form 5500-EZ
The common-law employee question that decides whether a simple one-participant packet is still the right lane.
Which Solo 401(k) assets go on Form 5500-EZ?
How to organize beginning and ending plan assets before preparing an annual one-participant return.
Form 5500-EZ line-by-line map for a Solo 401(k)
A source-linked field map for owner-only Solo 401(k) sponsors preparing a simple 2025 Form 5500-EZ packet.
Official sources
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