CPA can't help me file Form 5500 for my Individual 401k - where to turn?

I've got an individual 401k plan with Schwab (their prototype plan) and just found out I need to file a Form 5500. Honestly, this form looks crazy complicated and I'm way out of my depth trying to figure it out myself. I reached out to my accountant for help, and he basically shut me down, saying he doesn't handle Form 5500 filings and suggested I should get a "plan custodian" instead. I'm kinda frustrated because I thought this was something my CPA would just take care of as part of my tax package. Now I'm scrambling to figure out what a plan custodian even is and how much extra this is going to cost me. Are other solo business owners with individual 401ks in the same boat? Do you all just hire separate specialists for this Form 5500 stuff, or is my accountant being lazy? Any recommendations on where to turn for help with this?

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27 comments

Mei Zhang

•8M

Form 5500 can definitely be intimidating! But good news - you might not even need to file it. Individual 401k plans (also called solo 401ks) with assets under $250,000 at the end of the year generally don't require a Form 5500-EZ filing. If your plan assets are over that threshold, then yes, you'd need to file. Your CPA isn't necessarily being lazy. Form 5500 filings are specialized and many tax professionals don't handle them regularly. A "plan custodian" is basically a third-party administrator (TPA) who specializes in retirement plan administration and compliance. They typically handle all the paperwork, testing, and filing requirements for qualified retirement plans. For a solo 401k though, you might not need a full-service TPA unless your plan is complex or has substantial assets. There are cheaper options like specialized Form 5500 preparation services that just handle the annual filing without the full TPA cost.

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Mei Zhang

•8M

That's right - if your 401k has $180k in it, you don't need to file Form 5500-EZ yet. The filing requirement kicks in for the plan year in which your balance exceeds $250,000 at the end of the year. When you do cross that threshold, you'll need to file Form 5500-EZ annually thereafter. While you technically could file it yourself, it's generally recommended to get professional help the first time since there are specific reporting requirements. At that point, you could use a form preparation service rather than a full TPA if your plan is straightforward. Some people do successfully file themselves after learning the process, but mistakes can trigger penalties, so weigh that against the cost of professional help.

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Amara Eze

•8M

After spending hours trying to figure out Form 5500 for my solo 401k, I finally found taxr.ai (https://taxr.ai) and it was a game-changer. I uploaded my Schwab statements and answered a few questions, and it handled all the complicated parts automatically. It's made specifically for situations like yours where your CPA won't help with specialized forms. The system walks you through each step and explains what information goes where - much better than just staring at confusing IRS instructions.

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Amara Eze

•8M

Yes, it handles all the required schedules including Schedule H. The system actually looks at your plan documents and financial statements to determine which schedules you need to complete. It's much more comprehensive than just the basic Form 5500. For your question about AI reliability, I had the same concern initially. It's not just an AI tool - there's a review process where retirement plan specialists verify everything before filing. You can file electronically through the system, or you can download the completed forms to file yourself. And yes, it does include guidance on state filings where required, though most individual 401k plans only need federal filings.

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NeonNomad

•8M

Just wanted to update after trying taxr.ai for my Form 5500 filing. I was super skeptical at first because I had been quoted $800 by a TPA to handle my simple solo 401k filing. The platform was actually really straightforward - I uploaded my year-end statements and plan document, and it guided me through the whole process. The review feature where they check everything before submission gave me confidence it was done right. Honestly surprised at how well it worked for something I thought would be a nightmare. Saved me a ton of money compared to what the TPA wanted to charge me. Will definitely use it again next year when I have to file again.

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Fatima Al-Hashemi

•8M

If you're struggling to get information from the IRS about Form 5500 requirements (like I was), try Claimyr (https://claimyr.com). I spent days trying to get through to someone at the IRS for clarification on some solo 401k reporting questions. Kept getting disconnected or waiting for hours. Claimyr got me connected to an actual IRS agent in about 20 minutes. You can see how it works in this video: https://youtu.be/_kiP6q8DX5c. The agent answered all my questions about specific filing requirements for my situation.

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Fatima Al-Hashemi

•8M

It uses a system that continuously redials and navigates the IRS phone tree until it gets through to an agent. When someone answers, you get a call connecting you directly. It's basically doing the tedious waiting and redialing for you, not using any special access. I was skeptical too, which is why I tried it as a last resort. The technology is fairly simple - it's just automated dialing persistence that most people don't have time for. Nothing magical about it, just saves you from having to manually redial for hours. The service exists because the IRS phone system is so terrible that people are willing to pay to avoid dealing with it.

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Sofia Martinez

•8M

I need to publicly eat my words about Claimyr. After posting that skeptical comment, I was still stuck with questions about my 5500-EZ that nobody could answer. Out of desperation, I tried the service. Got connected to an IRS pension specialist in about 30 minutes who walked me through exactly what I needed to do for my situation. Turns out I was overthinking the whole process. According to the agent, my situation was pretty straightforward even though my CPA made it sound impossibly complex. Was able to file correctly after that call and already got confirmation it was accepted. Sometimes you need to hear it directly from the IRS to feel confident you're doing it right.

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Dmitry Volkov

•8M

You can e-file using the Department of Labor's EFAST2 system. It's actually preferred and easier than mailing. For small plans like solo 401ks filing Form 5500-EZ, there used to be an exception allowing paper filing, but electronic filing is now available for everyone and much more efficient. The DOL system does require you to register and get credentials, but once you're set up, it's pretty straightforward. You'll get immediate confirmation that your filing was received, which gives peace of mind versus wondering if your mailed form got lost somewhere.

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Kiara Greene

•6M

Just went through this exact situation last year! My CPA also refused to help with Form 5500 and I was totally lost. After reading through all these responses, I ended up using a combination approach that worked well for me. First, I used Claimyr to actually talk to an IRS specialist who confirmed I needed to file (my solo 401k was at $280k). The agent was super helpful and explained that since I only have myself as a participant, the filing requirements are much simpler than for larger plans. Then I used the DOL's free EFAST2 system that Dmitry mentioned. It took about 2 hours to set up my account and get familiar with the interface, but once I had my Schwab year-end statements and plan documents ready, the actual filing only took about an hour. The system validates everything as you go, so you know if you're making mistakes. The key insight from my IRS call was that solo 401k filings are much more straightforward than multi-participant plans - no discrimination testing, no complex schedules in most cases. Your CPA probably doesn't want to deal with it because it's outside their wheelhouse, but that doesn't mean it's actually difficult for the plan owner to handle. Total cost was just the Claimyr fee (around $40) versus the $800+ quotes I was getting from TPAs. Definitely worth doing the research before paying someone else thousands to handle something you can manage yourself!

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Hiroshi Nakamura

•5M

This is exactly the kind of detailed breakdown I was hoping to find! Thanks for sharing your experience with the combination approach. I'm sitting at around $260k in my solo 401k so I'm right at that threshold where I need to start filing. The fact that you got it done for just $40 plus your time versus paying $800+ to a TPA is pretty compelling. I'm definitely going to try the Claimyr route first to get my questions answered directly from the IRS, then tackle the EFAST2 system myself. One quick question - when you say it took 2 hours to set up the EFAST2 account, was that mostly just the registration process or did you need to gather a bunch of additional documents beyond your year-end statements?

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Miguel Herrera

•5M

@Hiroshi Nakamura The 2-hour setup was mostly the registration process and getting familiar with the system interface. You need to create a DOL account, get your EFAST2 credentials, and then spend time understanding how the form flows work. The actual document gathering was pretty straightforward - just your year-end statement from Schwab, your original plan adoption agreement, and basic business info like EIN. The most time-consuming part was reading through the user guide to understand which sections applied to my situation as a solo participant. But once you know what you re'doing, subsequent years should be much faster since you ll'already have your account set up and understand the process. One tip: make sure you have your plan s'original effective date handy - the system asks for that and it s'not always obvious from your current Schwab statements where to find it.

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Ava Williams

•4M

This thread has been incredibly helpful! I'm in almost the exact same situation - solo 401k with Schwab that just crossed $250k and my CPA basically said "not my problem." Reading through everyone's experiences, it sounds like the key is getting direct clarification from the IRS first, then using the DOL's free system rather than paying crazy TPA fees. @Kiara Greene and @Miguel Herrera - thanks for the detailed breakdown of the EFAST2 process. The fact that you got through it for under $50 total versus $800+ quotes is exactly what I needed to hear. I was starting to panic thinking I'd have to shell out thousands every year just for this filing. One question for anyone who's been through this - how far in advance should I start the process? My plan year ends December 31st, so I've got until July 31st to file, but I don't want to wait until the last minute and then scramble if I run into issues.

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Eva St. Cyr

•4M

@Ava Williams I d'recommend starting the process at least 2-3 months before the July 31st deadline. That gives you plenty of time to get through to the IRS via Claimyr sometimes (takes a few tries ,)set up your EFAST2 account, and work through any hiccups without stress. I actually started in April for my July filing and was glad I did - ran into some confusion about which version of Schedule H I needed and had to call the IRS twice to get it sorted out. Having that buffer time meant I could take my time understanding everything rather than rushing through it. Also, Schwab usually has your final year-end statements available by mid-January, so you ll'have all the financial data you need well before you start the filing process. The key is just not procrastinating once you have everything in hand!

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Raúl Mora

•3M

Going through this exact same frustration right now! My solo 401k with Schwab hit $270k last year and I just discovered I need to file Form 5500-EZ. Like you, my CPA basically said "good luck with that" and quoted me some ridiculous fees for a TPA. After reading through all these responses, I'm feeling much more confident about tackling this myself. The combination approach that @Kiara Greene described sounds perfect - use Claimyr to get my specific questions answered by an actual IRS agent, then handle the EFAST2 filing myself. It's honestly frustrating that something this important for solo business owners isn't better explained or supported by the financial institutions holding our money. Schwab takes their fees but leaves us hanging when it comes to compliance requirements. At least now I know I'm not alone in dealing with this! Thanks everyone for sharing your experiences - this thread is going to save me hundreds (maybe thousands) in unnecessary TPA fees.

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Samantha Hall

•2M

@Raúl Mora I m'so glad this thread is helping! I was in the exact same boat a few months ago - feeling completely abandoned by both my CPA and Schwab when I hit that $250k threshold. It s'really eye-opening how little support there is for solo business owners dealing with these compliance requirements. One thing I ll'add to what everyone else has shared - don t'be intimidated by the Form 5500-EZ itself once you actually see it. The IRS and DOL websites make it sound way more complicated than it actually is for a simple solo 401k. Most of the form doesn t'even apply to single-participant plans, so you ll'end up filling out maybe 30% of the actual form. The biggest hurdle really is just getting past that initial confusion and knowing where to start. Once you talk to an IRS agent through Claimyr and realize how straightforward your situation actually is, the whole process becomes much less scary. You ve'got this!

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Victoria Jones

•2M

I'm dealing with this exact same situation! My individual 401k just hit the $250k threshold and I'm completely overwhelmed by the Form 5500 requirement. My CPA also basically said "not my department" which left me scrambling to figure out what to do. Reading through all these responses has been incredibly enlightening - especially the breakdown from @Kiara Greene about using Claimyr to talk directly to an IRS specialist first, then handling the EFAST2 filing yourself. The fact that you can get this done for under $50 versus paying $800+ to a TPA is exactly what I needed to hear. I had no idea that solo 401k filings were actually much simpler than the multi-participant plans, or that most of the Form 5500-EZ doesn't even apply to single-participant situations. It sounds like a lot of the complexity and fear around this form comes from CPAs and TPAs not wanting to deal with something outside their usual wheelhouse. Has anyone run into issues with the EFAST2 system itself being glitchy or hard to navigate? I'm pretty comfortable with technology but want to know what I'm getting into before I start the registration process.

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