Jolly G Posted November 11, 2021 Report Share Posted November 11, 2021 Does anyone know when you must file the 5500-EZ given the below circumstance? "My account was closed and all assets were dispersed earlier this year from my Solo 401k plan." Would the 5500-EZ need to be filed within 7 months from the month of full distribution and account closure or can this person file the 5500-EZ by July 31, 2022 if they are on a calendar year schedule? Does any of this depend on when the 1099-R is received? All help is appreciated! -Jolly Link to comment Share on other sites More sharing options...
ESOP Guy Posted November 11, 2021 Report Share Posted November 11, 2021 It is 7 months after the assets are all distributed from the plan. Jolly G and Luke Bailey 2 Link to comment Share on other sites More sharing options...
CuseFan Posted November 11, 2021 Report Share Posted November 11, 2021 Last day of the seventh month, to be exact. So if payout was any time during the month of May, for example, the final EZ filing is due by 12/31 absent filing an extension (which would also be due by 12/31). And a final EZ filing is due even if the plan never exceeded $250,000 and never filed an EZ before. Jolly G, Luke Bailey and ESOPMomma 3 Kenneth M. Prell, CEBS, ERPA Vice President, BPAS Actuarial & Pension Services kprell@bpas.com Link to comment Share on other sites More sharing options...
ESOP Guy Posted November 11, 2021 Report Share Posted November 11, 2021 1 hour ago, CuseFan said: Last day of the seventh month, to be exact. So if payout was any time during the month of May, for example, the final EZ filing is due by 12/31 absent filing an extension (which would also be due by 12/31). And a final EZ filing is due even if the plan never exceeded $250,000 and never filed an EZ before. Yes, I should have been more precise as this is the better answer. Link to comment Share on other sites More sharing options...
EMoney Posted November 12, 2021 Report Share Posted November 12, 2021 Does account close = plan was terminated? Account could have been closed simply because no assets remained (i.e. an in-service distribution). If plan was not terminated, I don't think you have a Form 5500-EZ filing requirement until final year or assets exceed $250,000 at plan year end. Link to comment Share on other sites More sharing options...
Jolly G Posted November 14, 2021 Author Report Share Posted November 14, 2021 On 11/12/2021 at 3:11 PM, EMoney said: Does account close = plan was terminated? Account could have been closed simply because no assets remained (i.e. an in-service distribution). If plan was not terminated, I don't think you have a Form 5500-EZ filing requirement until final year or assets exceed $250,000 at plan year end. Does this mean the final 5500-EZ would only need to be filed by July 31st, 2022 if there was a full in-service distribution in early 2021, account closed, but no technical termination via updating plan documents? Link to comment Share on other sites More sharing options...
Jolly G Posted November 16, 2021 Author Report Share Posted November 16, 2021 @ESOP Guy @CuseFan @EMoney Any help with this? Does this mean the final 5500-EZ would only need to be filed by July 31st, 2022 if there was a full in-service distribution in early 2021, account closed, but no technical termination via updating plan documents? Link to comment Share on other sites More sharing options...
BG5150 Posted November 16, 2021 Report Share Posted November 16, 2021 There is no "final" 5500 until the plan is officially terminated. QKA, QPA, CPC, ERPATwo wrongs don't make a right, but three rights make a left. Link to comment Share on other sites More sharing options...
ESOP Guy Posted November 16, 2021 Report Share Posted November 16, 2021 Maybe the lawyers can give a better answer I would think you would have a problem if you never bother to do a termination amendment. I haven't worked on 1 person plans since the '90s so if someone wants to tell me I am wrong I can live with that. Link to comment Share on other sites More sharing options...
EMoney Posted November 16, 2021 Report Share Posted November 16, 2021 1 hour ago, BG5150 said: There is no "final" 5500 until the plan is officially terminated. I agree with this. Link to comment Share on other sites More sharing options...
CuseFan Posted November 17, 2021 Report Share Posted November 17, 2021 If the account is closed and there is no longer a trust, how is there is still a plan? And why would you not execute a resolution to terminate and file a final EZ? That would be the smart thing to do. Otherwise you technically have an ongoing obligation to maintain updated plan documents. Just because something might be technically legal doesn't mean it's not ill-advised. Kenneth M. Prell, CEBS, ERPA Vice President, BPAS Actuarial & Pension Services kprell@bpas.com Link to comment Share on other sites More sharing options...
EMoney Posted November 17, 2021 Report Share Posted November 17, 2021 CuseFan, I agree with you. My premise is more along the lines of a plan sponsor taking an in-service distribution to avoid the $250,000 in assets so they don't have to file an EZ. I've seen that happen and then they think they don't have a 5500-EZ filing obligation or a need to terminate the plan when they decide they no longer need the plan. Link to comment Share on other sites More sharing options...
BG5150 Posted November 18, 2021 Report Share Posted November 18, 2021 A retirement plan is like a gym membership. You have to keep paying for it even if you are not using it. When you cancel your membership/terminate the plan, you can stop paying. EMoney and Bill Presson 2 QKA, QPA, CPC, ERPATwo wrongs don't make a right, but three rights make a left. Link to comment Share on other sites More sharing options...
Francis Posted November 20, 2021 Report Share Posted November 20, 2021 For a closed solo 401k that failed to file a final 5500-EZ when it was due 18 months ago, we filed a final 5500-EZ and included $500 under the "Delinquent Return Submitted under Rev. Proc. 2015-32 Eligible for Penalty Relief" program. We never heard from the government after filing, but they did cash the $500 check. Link to comment Share on other sites More sharing options...
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