No 5500 EZ filings

[MarZDoates]

Client has told us about a Keogh plan that was established in 1987. The plan covered the owner and one employee. Client "terminated" the Keogh in 2003 and transferred all assets to an IRA in 2004. Their broker has told them to file a final 5500 on the Keogh. It does not appear that the client EVER filed any 5500s. With that being the case, should they file a final one now? If so, wouldn't it be a first and a final?

[Blinky the 3-eyed Fish]

You are omitting 2 important pieces of information. First, you say there was an employee. Was the employee the spouse? If not, then it's not an EZ that should have been filed. If it was the spouse and an EZ is correct, then were the assets over $100,000?

If the employee was not a spouse, then you should not file without going under the DFVC program.

[MarZDoates]

The employee was not the spouse. Broker originally told the client they needed to file an EZ. I agree with you. It should have been a 5500. Assets are greater than $100,000. Thanks for the input.

[Blinky the 3-eyed Fish]

One other note. When going under the DFVC program, you are going to file returns for the last 17 years. The client should know the costs associated with this versus the potential liability of never filing at all.

What it boils down to is the broker is giving some very bad advice.