True or false; a final Form 5500-EZ is not needed for plans with assets exceeding $250,000.

A final Form 5500-EZ is indeed required for plans with assets exceeding $250,000. The Form 5500 series, including the EZ version, is part of the annual reporting requirement for employee benefit plans. This requirement ensures regulatory compliance and transparency regarding the financial condition of the plan.

For plans with total assets greater than $250,000 at the end of the plan year, the IRS mandates that a Form 5500-EZ must be filed. The form provides essential information about the plan’s financial condition, investments, and operations, allowing the IRS and the Department of Labor to monitor compliance with the Employee Retirement Income Security Act (ERISA).

It’s important to note that the requirement applies regardless of the type of plan—whether it is a defined contribution or defined benefit plan. Thus, the correct understanding is that the filing of the final Form 5500-EZ is essential for these plans, reinforcing the regulatory framework surrounding retirement plan administration.