One participant plan and Form 5500-SF

[cpc0506]

We are instructing our new solo k clients that they should file a Form 5500-SF instead of the Form 5500-EZ.  Do the same rules apply for the asset level that requires a filing? In order words, is it correct that even a Form 5500-SF is not required for a solo k until the assets exceed $250,000?

[ETA Consulting LLC]

Correct.  The filing requirements have not changed.  The only differences is the filing method; which now enables the solo k plans to be reported through electronic means.

Good Luck!

[Tom Poje]

while I wouldn't think it would be missed, make sure 'one participant plan' is checked.

I know, I know, "well DUH!", but sometimes the obvious is overlooked.

I assume most software works the same. checking that box prevents a number of items from being answered on the 5500 SF, it prevents the form from posted to the general public, etc,

 

by the way, tell them the IRS prefers filing this way

https://www.irs.gov/retirement-plans/file-your-one-participant-plans-electronically-using-form-5500-sf-they-are-now-excluded-from-online-search-database

One-participant plans cover only a business owner and his or her spouse, or cover only one or more partners or partners and their spouses in a business partnership. Annual returns of one-participant plans can be filed by:

• electronically using Form 5500-SF with the Department of Labor’s EFAST2 system, if certain conditions are met
• completing and mailing a paper Form 5500-EZ to IRS.

However, electronic filing makes the process easier for the filer and increases data accuracy

[MaryMcConnell]

Resurrecting this post from 100 years ago….

I have an instance where a one-participant plan filed 5500 SF for 2018 and 2019, but the box WAS NOT checked for either year.  Ooopsie.  Number of participants listed in section 5 (beginning, ending, etc.) was “1”.

Can I now switch over to an EZ for 2020?  Will a letter be generated by IRS looking for an SF filing?

[Mike Preston]

Yes. Shouldn't. No biggie either way.