Leaderboard

You will report credits earned in each year 2023, 2024 and 2025. It helps to see what the form looked like (https://www.irs.gov/pub/irs-pdf/f8554.pdf) to see what information is required, but renewals are easier using pay.gov. The place to start is here: https://www.irs.gov/tax-professionals/enrolled-agents/maintain-your-enrolled-agent-status Here is a fairly detailed description of the renewal process: https://accountably.com/irs-forms/f8554ep/ (my including this here is not an endorsement of their service). I agree the calendar-year dates for earning credits tied to off-calendar-year dates for the renewal application period and a different off-calendar-year dates for the expiration of the renewal makes it seem more complicated than it needs to be, but in our business most things that are tied to off-calendar-year dates seem more complicated than they need to be.

I have heard of consequences from not filing a Final 5500. The two partners rolled their plan accounts to IRAs and thought that was that. Five or so years later, the IRS said your money purchase plan is still on-going. Where is your latest restatement and 5500 filing? I don't know what it cost to untangle the mess.

Many practitioners are overly generous. A fee should include not only the work but also something for availability. Whether that’s through an explicit fee for availability or, when there is work, a task-based fee or a time-based fee priced with a margin for availability might turn on one’s profession’s rules.

In 2023, I received the renewal due by January 31st email and submitted my application in January as instructed. They came back with a reply that I submitted too early and would need to resubmit after April 1, and pay again too. So don't do it early!

As a former TPA I will tell you these are generally not great clients. I dont mean in the sense that they are jerks or that they don't pay their bills. I mean they are so "unusual" from an operational perspective that only a partner can assist and answer their questions. There is no detailed work ti be done, so not much that a staff person can do. So if you bring on one of those clients, it's basically 100% partner time which starts to raise the quesiton of "can you charge enough money." I used to tell clients, "it's not worth it for you to pay me what I need to get paid to do this work for you, but I cant do it for any less. If you want me to be available to you when you call, I need a decent fee." I would review the plans all the time throughout the year for, amendments needed, invoicing, collections, you name it. Just having a plan on the books takes time even if I'm not doing any work. I used to charge $1,250 a year and I still think it wasn't enough sometimes.

Are they asking you to renew as an EA, or as an ERPA? That intro you pasted here doesn't say enrolled retirement plan agent

I will say, while most advisors will just use the plan documents provided by a custodian (Altruist/Charles Schwab) without even reading them, there is a growing group, especially in XYPN, that will typically bring in providers like mysolo401k. But I mostly see advisors using the custodian's plan docs, and the advisor takes on a pseudo admin role without having the knowledge to step into those shoes.

Hi David, good point on the earnings. Thank you

As stated already, I think the majority of "solo 401ks" are created without a TPA, but via a financial advisor or CPA. Only after issues arise, all those already mentioned, does a TPA/Attorney get involved. Recently, I had one referred by a CPA where his client thought he had a SEP not a 401k plan, for over 15 years. Another was set up without anyone asking the ownership/controlled group question. I think these plans are more likely to have alternative investments which can bring more unknown complications. They seem simple to market and run, until they are not.