bzorc Posted July 9, 2004 Posted July 9, 2004 I have a client, a 100% S-Corporation owner. In 2002 he and his wife, an employee of the S-Corp, set up a 401(k)/Profit Sharing plan, and both made elective deferrals as well as receiving a profit sharing contribution. No Form 5500-EZ was filed, as assets were less than $100,000. In 2003, husband and wife divorce, and as of 12/31/03, both of their account balances remain in the plan, and the amount of assets is still less than $100,000. Question: Is a Form 5500 (not 5500-EZ) required for 2003? I think it is, as the instructions to Form 5500-EZ do not address this issue. Thanks for any replies.
Blinky the 3-eyed Fish Posted July 9, 2004 Posted July 9, 2004 I agree that a 5500 is required. While the instructions don't specifically address this situation, they do clearly state that a corporation can cover only the owner and his/her spouse; no longer a spouse, no longer can file an EZ. "What's in the big salad?" "Big lettuce, big carrots, tomatoes like volleyballs."
TBob Posted July 9, 2004 Posted July 9, 2004 Would it matter if she got half of the company in the divorce? She would still be an owner.
Blinky the 3-eyed Fish Posted July 9, 2004 Posted July 9, 2004 No, that wouldn't matter. Then you would have 2 non-spouse owners of a corporation, which too doesn't meet the criteria to file an EZ. "What's in the big salad?" "Big lettuce, big carrots, tomatoes like volleyballs."
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