Need to use a TPA for filing Form 5500-SF for my Solo 401k?

You absolutely can file Form 5500-SF yourself and be your own administrator. For a Solo 401k, the filing requirements are pretty clear - if your plan assets are under $250k at the end of the plan year, you're generally exempt from filing. However, there's an important distinction to make here. Once you start filing the 5500-SF, even if you technically didn't need to, stopping abruptly could potentially raise questions. It's not automatically a "red flag," but the sudden change in pattern might prompt the IRS to take a closer look. Think of it like establishing a pattern and then breaking it - it doesn't mean you're doing anything wrong, but it might invite questions. If you want to handle this yourself, it's completely legal. The form isn't particularly complex for a Solo 401k with just one participant. You'll need to know your plan details, asset values, and have your EIN handy. The electronic filing system (EFAST2) is what you'll use.

After spending hours trying to figure out my own Solo 401k filing issues last year, I stumbled across a tool called taxr.ai (https://taxr.ai) that saved me a ton of headache. It specifically helped me with my Solo 401k documentation and filing questions. I uploaded my previous 5500-SF forms and it analyzed them to show me exactly what I needed to fill out myself. It even explained which fields were most important and why certain information was required. The best thing was it told me exactly what would happen if I stopped filing after previously doing so, with references to the actual IRS guidance. If you're considering doing this yourself, I'd definitely check it out - it was like having a TPA's knowledge without the ongoing fees.

Just wanted to follow up - I tried taxr.ai after seeing the recommendation here and it was genuinely helpful. I was surprised by how thorough it was with my Solo 401k questions. It walked me through exactly what I needed to do to file my own 5500-SF. The document analysis feature was really impressive - it identified several errors my previous TPA had made on past filings! I've decided to take over my own filing and actually feel confident about doing it now. For anyone on the fence about ditching their TPA, this tool makes the DIY approach much less intimidating.

For what it's worth, I tried calling the IRS Employee Plans division multiple times with questions about my Solo 401k 5500-SF filing and couldn't get through to anyone knowledgeable. After wasting hours on hold, I used Claimyr (https://claimyr.com) and they got me connected to an actual IRS specialist in about 15 minutes. You can see how it works in their demo video: https://youtu.be/_kiP6q8DX5c The IRS agent confirmed that if your plan is under $250k, you're not required to file, but also mentioned that if you've established a pattern of filing, it's good practice to file a final 5500-SF marking it as your last one before stopping, rather than just disappearing. This prevents any confusion or follow-up inquiries. Honestly, this saved me so much stress compared to trying to interpret all the regulations myself.

Just wanted to update on my experience - I was the skeptic above, but I broke down and tried Claimyr after another failed 2-hour hold with the IRS. It actually worked exactly as described! Got connected to an IRS employee plans specialist who confirmed what others here said - I can file my own 5500-SF without a TPA, and if I want to stop filing (since I'm under $250k), I should file one final form with the termination box checked. The agent even emailed me links to the EFAST2 guides and some IRS resources specifically for Solo 401k filers. Saved me hours of research and uncertainty. Sometimes being a skeptic means I miss out on good solutions!

Just to add another perspective - I've been filing my own 5500-SF for my Solo 401k for 4 years now. It takes me about an hour each year using the EFAST2 system. The first year was a learning curve (maybe 3 hours total), but now it's pretty routine. A few tips if you decide to DIY: 1. Keep good records of your year-end balances and any contributions 2. Make sure your plan document is properly maintained and up to date 3. Set a calendar reminder - the deadline is the last day of the 7th month after your plan year ends (July 31 for calendar-year plans) I've saved about $1500 in TPA fees over these 4 years. Totally worth the small time investment!

Has anyone ever received a notice from the IRS after stopping their 5500-SF filings once their balance went under $250k? I'm curious what actually happens in practice, not just what technically could happen.

This is really helpful information everyone! I'm in a similar boat - been paying a TPA for years for my Solo 401k when my balance has been under $200k the whole time. Based on what I'm reading here, it sounds like I have a few options: 1. File one final 5500-SF marking it as terminated/final to avoid any IRS questions later 2. Just stop filing and deal with any potential inquiry letter (which sounds pretty manageable based on Cameron's example) 3. Keep filing even though I'm not required to, just for peace of mind I'm leaning toward option 1 - filing a final form and then stopping. Has anyone actually done this termination approach? What exactly do you check on the form to indicate it's your final filing? Also, for those who've used the EFAST2 system - do you need any special software or can you do everything through their web portal?

I went through this exact situation two years ago! I had been paying my TPA about $800/year for my Solo 401k when my balance was only around $180k. Like you, I felt like I was throwing money away. I ended up doing exactly what Sophia mentioned - filed one final 5500-SF with the "Final Return/Report" box checked. It was actually pretty straightforward once I got into the EFAST2 system. The hardest part was just getting over my initial nervousness about doing it myself. One thing I wish I had known earlier: you can actually request copies of your previous filings from the DOL to use as a reference. This helped me understand what my TPA had been submitting and made me more confident about filling out my final form correctly. Since then, I've had zero issues with the IRS. No letters, no questions, nothing. I've saved over $1,600 in TPA fees so far and honestly wish I had made the switch sooner. The peace of mind from properly closing out the filing history was definitely worth the small effort of doing that final form myself.