aaronb26

Husband and wife each have their own wholly owned business and they are the only employees of their respective companies - Company A and Company B. The retirement plan is setup under Company A. Her company (Company B) is a participating employer in his retirement plan. I have not come across this situation yet so I had a couple of questions. Together their 401k balances exceeded $250k for 2021 (Company A $160k, Company B $140k), but they did not file a return or extension for 2021. Fast forward to 2022 and they are still above $250k so I would like to file an extension to help prevent an additional $500 late filer penalty for 2022. Before I proceed I had a couple of questions. 1) I assume both of their retirement values is used in determining if they meet the filing threshold. Is this correct? 2) If the wife's company is a participating employer can we still file Form 5500-EZ since all they have are retirement assets? I noticed 5500-SF has a box to indicate a mulitple-employer plan. Not sure if that applies here. 3) Do any special schedules or attachments need to be included in a situation like this? 4) We are not ready to file the 2021 Form 5500. Will filing an extension for 2022 potentially tip off the IRS/DOL that 2021 was not filed and lead to severe penalties? We would like to pursue late filer relief for 2021 and file 2021/2022 ASAP once the extension is mailed in. Thank you

Thank you for the help so far guys! In this case is the company itself NOT the plan sponsor, but the plan participant? Where things get murky is I've seen people argue since they are different companies/sponsors they would not need to file, where as I was a bit more conservative and was looking at who the participant/beneficiary of these plans is.

This IRS article has me a bit confused on what filing is required: https://www.irs.gov/retirement-plans/financial-advisors-are-assets-in-your-clients-one-participant-plans-more-than-250000 Let's say a person has two solo 401k plans setup: 1) Sole proprietorship - solo 401k balance of $1,500,000 2) S-Corp - solo 401k balance of $125k. Both companies have separate EINs and 401k accounts. Since the individual is the sole participant in both plans would they be required to report the smaller account balance on Form 5500-EZ since in aggregate they are over $250k or is it not required since these are two different sponsors and the 2nd account is under the $250k threshold? If required, would it be wise to file and request late filer relief and pay the fee?