Does a SEP or SIMPLE IRA Have to File Form 5500-EZ? (w/Examples) + FAQs

This article reflects federal IRS rules as of June 2026 and covers tax year 2025 (the 2026 filing season). Tax law changes — confirm current figures on IRS.gov before you file.

Quick Answer

No. A SEP IRA or SIMPLE IRA does not file Form 5500-EZ for tax year 2025. These are IRA-based plans, so the IRS does not require any Form 5500-series return from the employer. Form 5500-EZ applies only to one-participant qualified plans, like a Solo 401(k).

If you own a SEP IRA or a SIMPLE IRA, you can stop worrying about the July 31 deadline that haunts Solo 401(k) owners — it does not apply to you, and there is no version of the form you are quietly forgetting to send. The IRS states plainly that a SEP employer “generally has no filing requirements, including the Form 5500 return.”

The confusion is real and costly in wasted time. The IRS itself runs a reminder campaign because so many small-business owners mix up which retirement plans must file. Roughly one million one-participant plan returns are filed each year, and a slice of those filers never needed to file at all because they confused an IRA-based plan with a qualified plan.

Here is what you will learn:

✅ Why SEP and SIMPLE IRAs are exempt from every Form 5500-series filing
🧭 How to tell in 30 seconds whether your plan owes a return
💰 The exact $250,000 trigger that forces a Solo 401(k) to file Form 5500-EZ
⚠️ The $250-per-day penalty you avoid — and the cheap fix if you ever owe it
📋 A step-by-step plan for what to do next, with deadlines and costs

Why SEP and SIMPLE IRAs Never File Form 5500-EZ

The whole answer turns on one word: IRA. A SEP IRA and a SIMPLE IRA are built on individual retirement accounts. Each employee owns their own IRA, and the money sits in that personal account from the day it lands. There is no separate trust that the employer holds and must report on.

Form 5500-EZ is an annual return for a qualified retirement plan that covers only the business owner (and a spouse). A Solo 401(k) is the classic example. A qualified plan is a single trust holding plan assets, and the IRS wants a yearly snapshot of that trust. An IRA-based plan has no such trust, so there is nothing for Form 5500-EZ to report.

This is why the rule feels almost too simple. The IRS SEP page confirms the employer has no Form 5500 duty, and SIMPLE IRAs get the same treatment. The reporting burden shifts to the IRA custodian — the bank or brokerage — which files Form 5498 to report contributions. You, the employer, file nothing.

The consequence of getting this wrong is usually wasted money and panic, not a penalty. People who wrongly believe they owe a 5500-EZ sometimes pay a third party to “file” a return that does not exist, or they enter the IRS penalty relief program for a plan that never had a filing duty. Neither helps.

A common misconception: “All retirement plans file a Form 5500.” Not true. ERISA and the IRS carve out IRA-based plans precisely because the individual-account structure already keeps the money transparent.

What you should do about it: Confirm your plan type on the adoption agreement you signed. If it says SEP or SIMPLE, close the file on Form 5500-EZ. If it says 401(k) — even “Solo” or “individual” 401(k) — keep reading, because the rules change.

Form 5500-EZ in Plain English

Form 5500-EZ is the Annual Return of a One-Participant Retirement Plan. The IRS uses it to track qualified plans that cover only an owner, or an owner and spouse, with no other employees. You file it with the IRS, and you can submit it electronically through the EFAST2 system or on paper.

The form is short by IRS standards. It asks for the plan name, the plan sponsor, total plan assets at year-end, contributions, and a few compliance check-boxes. There is no tax due on the form — it is purely informational.

The consequence of ignoring it when you owe one is steep, which is why people are so anxious about it. Under IRC section 6652(e), the penalty is $250 per day, up to a maximum of $150,000 per plan per year. That penalty never touches a SEP or SIMPLE IRA, because those plans have no filing requirement to violate in the first place.

What you should do about it: If you have a Solo 401(k), mark July 31 on your calendar each year you cross the asset trigger described below. If you have a SEP or SIMPLE IRA, you can ignore the form entirely.

Which Situation Applies to You?

The right answer depends entirely on your plan type and, for one plan, its size. Find the row that matches you.

You have a SEP IRA. No Form 5500-EZ, ever. No 5500 of any kind. The IRS confirms the employer has no filing requirement. Skip to “What To Do Next.”
You have a SIMPLE IRA. Same as the SEP — no Form 5500-series return for the employer. Your only paperwork is keeping the plan document and notifying employees each year.
You have a Solo 401(k) with $250,000 or less in assets. No filing required yet. Watch your year-end balance.
You have a Solo 401(k) with more than $250,000 in assets. You must file Form 5500-EZ by July 31. This is the one group that genuinely has a deadline.
You have a Solo 401(k) in its final year. You must file a final Form 5500-EZ when you terminate the plan, regardless of the asset balance.
You have a regular 401(k) with non-owner employees. You file Form 5500 or 5500-SF, not the EZ. Different form, different rules.

The $250,000 Trigger That Forces a Solo 401(k) to File

A Solo 401(k) is exempt from Form 5500-EZ only while it stays small. The line is bright: once combined plan assets exceed $250,000 on the last day of the plan year, the filing requirement begins. For a calendar-year plan covering 2025, the first return is due July 31, 2026.

“Combined” matters. If you and your spouse each have an account inside the same Solo 401(k), you add both balances together to test the $250,000 line. Two $150,000 accounts equal $300,000 — over the line — even though neither account alone crosses it.

The consequence of missing this is the $250-per-day penalty described earlier. The good news for honest late filers is the IRS penalty relief program under Rev. Proc. 2015-32, which caps the fee at $500 per late return, up to $1,500 per plan, if you act before the IRS sends a penalty notice.

A common misconception: “My brokerage files the 5500-EZ for me.” Usually false. Most custodians do not file it, and the duty stays with you as the plan sponsor.

What you should do about it: Check your Solo 401(k) year-end statement every December. The year your balance tops $250,000, plan to file by July 31 of the following year, or request an extension with Form 5558.

Worked Example: The Math That Proves You Owe Nothing

Numbers make this concrete. Walk through a real calculation so you can copy it for your own plan.

Imagine Maria, a freelance graphic designer in her own LLC. In 2025 she earns $120,000 in net self-employment income and funds a SEP IRA. Her contribution limit is 25% of compensation, capped at $70,000 for 2025, per IRS retirement plan limits. Her contribution works out to roughly $22,300 after the self-employment adjustment.

By December 31, 2025, her SEP IRA holds $245,000 after years of saving and market growth. Does she owe a Form 5500-EZ? No. The $250,000 trigger is a Solo 401(k) rule. A SEP IRA never files, no matter the balance — even at $1 million. Maria files $0 in plan returns and spends $0 on the form.

Now compare David, who runs the same kind of business but chose a Solo 401(k). His combined balance hits $260,000 on December 31, 2025. Because he crossed $250,000, David must file Form 5500-EZ by July 31, 2026. If he forgets and files 200 days late without relief, his exposure is 200 × $250 = $50,000 — but under the relief program he pays just $500. Same business, same income, different plan, very different paperwork.

Three Common Scenarios

These three situations cover most people who land on this question. Each table shows the plan and the resulting filing duty.

Scenario 1 — Solo freelancer with a SEP IRA

Your Situation	Your Filing Duty
SEP IRA, $80,000 balance	No Form 5500-EZ; no 5500 of any kind
SEP IRA, $400,000 balance	Still no Form 5500-EZ; balance is irrelevant for SEPs
Custodian files Form 5498	Yes, but that is the custodian’s job, not yours

Scenario 2 — Small business with a SIMPLE IRA

Your Situation	Your Filing Duty
SIMPLE IRA covering 8 employees	No Form 5500-series return for the employer
Annual employee notice due	Yes — deliver the 60-day election notice each year
Plan document on file	Keep it; no annual IRS return attached to it

Scenario 3 — Owner who switched to a Solo 401(k)

Your Situation	Your Filing Duty
Solo 401(k), $200,000 year-end balance	No filing yet; under the $250,000 line
Solo 401(k), $300,000 year-end balance	File Form 5500-EZ by July 31
Terminating the Solo 401(k)	File a final Form 5500-EZ regardless of balance

Named Examples

Priya, the consultant who almost overpaid. Priya runs a one-person consulting LLC with a SEP IRA worth $310,000. A forum post scared her into thinking she owed a 5500-EZ and a late penalty. After reading the IRS SEP rules, she confirmed SEP IRAs never file. She saved the $500 relief fee she was about to pay for a return that did not exist.

Marcus, the bakery owner with a SIMPLE. Marcus offers a SIMPLE IRA to his five employees. His payroll provider asked if he needed to file a 5500. He does not — SIMPLE IRAs carry no employer Form 5500 duty. His only annual task is handing each worker the required election notice before the 60-day window opens.

Lena, the engineer who crossed the line. Lena opened a Solo 401(k) in 2021. By December 31, 2025, her account hit $264,000. Because she passed $250,000, she filed her first Form 5500-EZ through EFAST2 by July 31, 2026. The filing took her under an hour and cost nothing. Had she ignored it, she risked the $250-per-day penalty.

SEP IRA vs. SIMPLE IRA vs. Solo 401(k): The Filing and Limits Picture

Choosing a plan affects far more than the 5500-EZ question. This table compares the three on the points small-business owners care about most for 2025.

Feature	SEP IRA	SIMPLE IRA	Solo 401(k)
Files Form 5500-EZ?	Never	Never	Only if assets exceed $250,000
Who can contribute	Employer only	Employer and employees	Owner as employer and employee
2025 contribution cap	Lesser of 25% of pay or $70,000 (2025 limit)	$16,500 employee deferral plus employer match	$70,000 combined, $77,500 with age-50 catch-up
Employee deferrals allowed	No	Yes, up to $16,500 for 2025	Yes
Best for	Solo earners wanting simple setup	Small teams up to 100 workers	Solo owners maximizing contributions

The headline: only the Solo 401(k) ever touches Form 5500-EZ, and only above $250,000. The SIMPLE IRA 2025 deferral limit is $16,500, with a $3,500 catch-up for age 50 and older.

Deadlines, Costs, and Timing

For a SEP or SIMPLE IRA, there is no Form 5500-EZ deadline, because there is no form. Your real deadlines are contribution deadlines — generally your business tax-filing due date, including extensions, for a SEP.

For a Solo 401(k) that owes the form, the deadline is the last day of the seventh month after the plan year ends — July 31 for a calendar-year plan, per the IRS Form 5500 corner. You can get an extension to October 15 by filing Form 5558 on time.

Cost is low either way. Filing Form 5500-EZ yourself through EFAST2 is free, and it takes most owners well under an hour. A tax professional may charge $150 to $400 to handle it. The expensive path is missing it: $250 per day up to $150,000, softened only by the $500-per-return relief program.

Mistakes to Avoid

Filing a 5500-EZ for a SEP IRA. You waste time and may invite IRS questions about a return that was never required.
Filing a 5500-EZ for a SIMPLE IRA. Same outcome — there is no employer Form 5500 duty for SIMPLE plans.
Assuming your custodian files the form. Most do not, and the penalty falls on you as the plan sponsor.
Ignoring the $250,000 trigger on a Solo 401(k). Crossing it without filing exposes you to $250 per day.
Forgetting to combine spousal balances. Two accounts under $250,000 can together top the line and trigger a filing.
Skipping the final-year return when terminating a Solo 401(k). A final Form 5500-EZ is required even if assets are under $250,000.
Missing the July 31 deadline without an extension. File Form 5558 before the deadline to push the date to October 15.
Paying the penalty before checking the relief program. Honest late filers usually qualify for the $500-per-return cap under Rev. Proc. 2015-32.

Do’s and Don’ts

Do confirm your plan type from the signed adoption agreement before assuming anything, because the plan type decides the entire answer.
Do track your Solo 401(k) year-end balance every December, since the $250,000 test is measured on the last day of the plan year.
Do file Form 5558 for an extension if you cannot meet July 31, because it is free and prevents penalties.
Do keep your SEP or SIMPLE plan document on file, since the IRS can ask to see it even though no return is due.
Do use the IRS penalty relief program if you are a late Solo 401(k) filer, because the $500 fee beats the $250-per-day penalty.
Don’t file a Form 5500-EZ for a SEP or SIMPLE IRA, because no return exists for those plans and it creates confusion.
Don’t assume your brokerage handles the filing, since most custodians leave it to you.
Don’t ignore spousal accounts in a Solo 401(k), because combined balances determine the trigger.
Don’t skip the final return when closing a Solo 401(k), since the IRS still expects it.
Don’t pay a late penalty without checking relief eligibility first, because you may overpay by thousands.

Pros and Cons of Picking an IRA-Based Plan to Dodge the Filing

Pro — No annual IRS return. SEP and SIMPLE IRAs never file Form 5500-EZ, which removes a yearly task and a penalty risk.
Pro — Simple setup. You can open a SEP in minutes with most custodians, because there is no trust to create.
Pro — Lower administrative cost. No filing means no preparer fee for the return and no extension paperwork.
Pro — Custodian handles reporting. The Form 5498 contribution report falls on the bank, not on you.
Pro — Flexible SEP funding. You can skip contributions in a lean year, since SEP contributions are discretionary.
Con — Lower deferral power. A SEP allows no employee salary deferrals, so high savers may contribute less than with a Solo 401(k).
Con — No loan feature. IRA-based plans cannot offer participant loans, while many Solo 401(k) plans can.
Con — Mandatory employer cost for SIMPLE. A SIMPLE IRA requires an employer match or contribution every year, which a SEP does not.
Con — No Roth option in a classic SEP/SIMPLE setup at every custodian. Roth features can be limited compared with a Solo 401(k).
Con — Less control over investments. Solo 401(k) plans often allow broader self-directed choices than a standard SEP or SIMPLE.

What To Do Next

Pull your plan document. Confirm whether it says SEP, SIMPLE, or 401(k). This single step answers the filing question for most people.
If it is a SEP or SIMPLE IRA, close the matter. No Form 5500-EZ is due now or ever. File this article and move on.
If it is a Solo 401(k), check your December 31 balance. Add all accounts, including a spouse’s, and compare to $250,000.
If you crossed $250,000, calendar July 31. File Form 5500-EZ through EFAST2, or file Form 5558 for an extension.
If you filed late in a past year, look at relief. The Rev. Proc. 2015-32 program caps the fee at $500 per return before any IRS notice.
Call a professional if your situation is complex. A CPA or enrolled agent helps when you have multiple plans, a plan termination, or a missed-filing history. Expect roughly $150 to $400 for a routine 5500-EZ.

This article is educational and is not a substitute for advice from a licensed tax professional about your specific situation. For deeper reading, see the related guides How to Fill Out Form 5500-EZ, Solo 401(k) vs. SEP IRA, and Understanding Form 5498.

FAQs

Does a SEP IRA file Form 5500-EZ? No. A SEP IRA never files Form 5500-EZ or any Form 5500-series return for tax year 2025. The IRS states the SEP employer has no filing requirement, because each employee owns a personal IRA rather than a trust.

Does a SIMPLE IRA file Form 5500-EZ? No. A SIMPLE IRA carries no employer Form 5500-series filing duty for 2025. Your only recurring task is delivering the annual employee election notice and keeping the plan document on file.

What plan actually files Form 5500-EZ? A one-participant qualified plan, like a Solo 401(k). It files only when combined plan assets exceed $250,000 on the last day of the plan year, or in the plan’s final year.

At what balance does a SEP IRA have to file? Never. There is no asset trigger for a SEP IRA. Even a $1 million balance creates no Form 5500-EZ duty, because the $250,000 rule applies only to Solo 401(k) plans.

When is Form 5500-EZ due? July 31. For a calendar-year plan covering 2025, the return is due July 31, 2026. You can extend to October 15 by filing Form 5558 before the original deadline.

What is the penalty for filing Form 5500-EZ late? $250 per day, up to $150,000 per plan per year, under IRC section 6652(e). Eligible late filers can instead use the relief program and pay $500 per return, capped at $1,500 per plan.

Does my custodian file Form 5500-EZ for me? No, usually not. Most banks and brokerages do not file the 5500-EZ. The duty stays with you as the plan sponsor, even for a Solo 401(k).

Do SEP or SIMPLE IRAs file any IRS form? Yes, but not by you. The IRA custodian files Form 5498 to report contributions and year-end value. The employer files nothing for the plan itself.

Does Form 5500-EZ apply at the state level? No. Form 5500-EZ is a federal IRS filing. States do not require a separate version of it for one-participant retirement plans.

Do I file Form 5500-EZ when I close a Solo 401(k)? Yes. You must file a final Form 5500-EZ in the plan’s last year, even if total assets are below the $250,000 threshold.

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