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Good day to all: A doctor (of course) signed the documents to set up a new 401(k) plan in December of 2018 that was effective 01/01/2018. It was to cover only her, at least to begin, because she had no employees. She signed everything, we did the document, she paid the bill, and it died right there. No investment accounts were ever opened; no deposits were ever made. All requests for information have been completely ignored. Does this plan really exist? There is nothing to file because there would only be an EZ if she had over $250,000 in the plan. It makes me nervous, though - I can't quite wrap my head around a client for whom there is nothing to do, if she really is a client at all. Have any of you had this happen? If she ever answers us and says she changed her mind and doesn't want the plan after all, do we need to terminate it as we normally would (resolution, amendment) and file the first, final, and only EZ for it? Can an employer sign all the papers and pay for a plan and then just walk away from it without further ado? Thanks as always for your advice.

I'm uncertain of how to complete Lines 7a-7c in Part III of the 5500-EZ. For End of Year Total Plan Assets (7a column 2) for a calendar year plan, should the value on the participant's 12/31 account statement be used? Or should any contributions made throughout the calendar year be subtracted from the 12/31 statement value? The instructions state to not include contributions designated for the plan year but those could be part of the 12/31 value if contributions were made during the calendar year. If contributions are made after 12/31 but before the tax filing deadline, should those be excluded from 7a-7c and just stated on 8a-8c? I know the 5500-EZ is supposed to really simple but how to arrive at the values for 7a-7c are confusing to me for contributions made during the calendar year and after the calendar year since the 12/31 statement is how I could arrive at the end of year value but contributions account for some of that value but the instructions mention not including contributions.

We are a CPA/TPA firm. We have just taken over a tax new client. They asked us to prepare the Form 5500-EZ for their solo 401k. It turns out they should have filed for 2013 and 2014 as the assets exceeded $250,000 in 2013. Typically, we would prepare and e-file the Form 5500-SF and mark one participant plan. However, I believe the penalty relief for the EZ form requires a paper filing. Should we paper file the 2015 Form 5500-EZ? or use the one-participant Form 5500-SF and e-file? All thoughts and suggestions appreciated.