41.7 Annual Keogh Plan Return

Partial relief from one burdensome IRS paperwork requirement may be available if your pension or profit-sharing Keogh plan covers only yourself, or you and your spouse, or you and your business partners and the spouses of the partners. Such plans are treated as one-participant plans by the IRS.

A one-participant Keogh plan does not file the extensive annual Form 5500 information return. A one-participant plan either files Form 5500-EZ on paper, or if eligible, it may electronically file Form 5500-SF.

Under an exception for small one-participant plans, Form 5500-EZ does not have to be filed if the value of plan assets at the end of the year is not more than $250,000. The exception applies if you have two or more one-participant plans that together have not exceeded the $250,000 asset threshold. All one-participant plans must file a Form 5500-EZ for their final plan year even if the plan assets have always been below $250,000.

The filing deadline for Form 5500-EZ or Form 5500 is the last day of the seventh month after the end of the plan year unless an extension is obtained; see the form instructions. Forms 5500 and 5500-EZ are not filed with the IRS; see the form instructions for the mailing address for Form 5500-EZ. Form 5500 must be filed electronically.

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