JanetJ

I had a 401k plan that I terminated in 2015 for tax year 2014 where I wrote number of participants at the end of plan year is 1 instead of 0 and thus keep getting letters CP214 from IRS asking me to review if i need to file form 5500-ez. So the irs agent told me to amend my 2014 plan to correct that. That was the first and final year that I filed the 5500-EZ does that mean the statue of limitation will start when I amend this return

Hi Lou, Is this still true? I filed a final and only 5500-EZ in 2014 but wrote number of participants at end of plan year to be 1 instead of 0. I already distributed all assets for myself in 2014 too. I just found out today when I keep getting reminder notice CP214 and I call IRS and they told me I should correct 2014 5500-ez form

Hi just wondering what you mean 5500 Bingo. I need to amend a 2014 return because total number of participant at end of year was 1 instead of 0. I already have box 1 2 and 4 check now with amendment i need to check box 2.

I just got this form too but several years. But I was told it was sent because when I filed the final 5500-EZ form for the number of participants end of year I put 1 instead of 0 for the solo 401k plan even though I wrote final return filed for the plan. is this a common error? When I called the IRS they immediately know about this even without asking for my personal info

I keep getting the CP214 form sent to me to remind me to determine if i need to file form 5500-EZ. I ignore it because it said we send this form just to remind you if you previously filed a form which I did in 2014. So today I was curious and I called the IRS. I said why do I keep getting this form even though I terminated the solo 401k plan. She immediately ask me if I had the 5500-ez in front of me. I did and everything was filled correctly EXCEPT the part that said "total number of participants at the end of the plan year". I wrote 1. She said I should have written 0 and that is why I keep getting this form. The Assets was already 0 and I wrote Final written. I was told to mail a amendment for 2014. I asked if I have to pay a penalty. I already converted the plan to a traditional IRA in 2014 and already issue 1099 and my asset at end of year was 0. He said I should not. He claims I don't have to pay a penalty because I filed it on-time but I just filed it incorrectly. I was told to mail the letter with an explanation and a 5500-EZ. Is the IRS agent correct? Anyone ever encounter this? I read online somewhere I need to pay $1500 penalty or $150,000. I was the only person on this solo 401k plan and I only file this return (due to final year) once because my plan never exceeded $250k nor was it even close.