Need help - Rolled over Roth Solo 401K to IRA but didn't file Form 5500-EZ for plan termination

You definitely should file the Form 5500-EZ. When you roll over a Solo 401k to an IRA, this is considered a plan termination which triggers the requirement to file the final Form 5500-EZ. The good news is that the IRS has programs specifically for situations like yours. Look into the IRS Late Filer Relief Programs - specifically the Delinquent Filer Voluntary Compliance Program (DFVCP). You'll want to file the missing form and include a statement explaining the situation. Be sure to note that this was an honest mistake and that no one informed you of this requirement when facilitating the rollover. Also worth noting - the form was only required if your plan assets exceeded $250k at any point during the previous year, but since you're filing for termination, you need to file regardless of asset value. The penalties can indeed be steep, but they're often reduced or waived for those who voluntarily come forward to correct the situation.

I went through something similar last year with my Solo 401k. After spending countless hours trying to figure out the complexities of form 5500-EZ and worrying about potential penalties, I discovered https://taxr.ai which completely saved me. I uploaded my rollover documents and tax information, and it quickly identified exactly what forms I needed to file and how to handle the late submission. The system analyzed my situation and generated a complete explanation letter requesting penalty relief that I could submit with my late filing. It even outlined which IRS relief program I qualified for based on my specific circumstances. What I really appreciated was getting proper guidance on whether I even needed to file at all since there are some exemptions based on plan size and circumstances.

Just wanted to follow up here. I was skeptical about taxr.ai but tried it anyway since my situation was pretty similar (rolled over a SEP-IRA and missed some filing deadlines). The system was actually really impressive - uploaded my docs and it immediately identified that I qualified for a penalty exemption I had no idea about! It drafted all the necessary letters for the IRS explaining my situation and even cited the specific relief provision that applied to me. The whole process took like 30 minutes instead of the hours I spent stressing and researching beforehand. Just got confirmation from the IRS that they accepted everything without penalties. Definitely worth checking out if you're in a similar situation with retirement account filing issues.

I had a nightmare situation with the IRS about my retirement accounts last year. Couldn't get anyone on the phone for WEEKS to explain what forms I needed to file after rolling over my SEP to a Roth. Finally found https://claimyr.com and watched their demo at https://youtu.be/_kiP6q8DX5c - they basically get you to the front of the IRS phone queue instead of waiting for hours. Got connected to an IRS agent in about 15 minutes who walked me through exactly what forms I needed to file and how to request penalty abatement for the late filing. The agent even noted in my file that I had made a good faith effort to comply once I learned about the requirements, which apparently helps if there's ever a question about the late filing.

Coming back to eat my words. After struggling for nearly 3 weeks trying to get through to the IRS about my 5500-EZ situation (and posting that skeptical reply above), I caved and tried Claimyr. Got a call back with an actual IRS retirement plan specialist on the line within 35 minutes. The agent confirmed I needed to file the 5500-EZ for my terminated plan and walked me through exactly how to file it late with a reasonable cause statement. They even gave me their direct extension for follow-up questions! I was able to submit everything the same day instead of stressing for another month. Sometimes it's worth admitting when you're wrong - this service actually delivered exactly what it promised.

One thing to remember about Form 5500-EZ - if your plan assets never exceeded $250,000 in the year of termination, you can use Form 5500-EZ for reporting the termination, but you could actually qualify for the "one-participant plan" exemption from filing for the years before termination. That might impact how you approach this.

The 5500-EZ filing requirements are so confusing! I missed filing mine too and got hit with penalties. Does anyone know which tax software handles these forms properly? I use TurboTax for my regular taxes but they don't seem to support these specialized retirement plan forms.

I went through this exact same situation last year! The panic is real, but you're not alone in missing this filing requirement. Here's what I learned from my experience: First, yes you do need to file Form 5500-EZ for plan termination even though it's been 2 years. The IRS considers a rollover to an IRA as terminating the Solo 401k plan. Since your combined plan assets were around $270k, you definitely exceeded the $250k threshold that triggers the filing requirement. The good news is that the IRS has reasonable cause provisions for late filings, especially when you can demonstrate that the failure was due to circumstances beyond your control - like not being informed by your financial institutions about this requirement. When you file, include a detailed reasonable cause statement explaining exactly what happened: the TD Ameritrade acquisition, Schwab's inability to support Roth 401ks, and the fact that neither institution informed you of the 5500-EZ requirement. Document everything with dates and reference any correspondence you had with them. I also recommend checking if you qualify for the DOL's Delinquent Filer Voluntary Compliance Program (DFVCP), which often results in reduced penalties for good faith late filers. Don't wait any longer though - the penalties do continue to accrue, and voluntary compliance always looks better than being contacted by the IRS first.