Termination

[Guest steve55]

Hi,

I have a partnership with no other employees that maintains a profit sharing plan 3 years old and a 401k plan just started last year whereby I am the only one contributing to the 401k. My partner (much older than me) always pulled out his profit sharing contribution every year except for about $100. We have not had to fille a 5500 because the plan assets were less than $100,000. I am about to make Profit Sharing contributions for both of our accounts for 2004. I am also in the process of terminating the partnership as my partner died in 2004. My questions are as follows:

1. I will be paying out his plan balance after I make the contribution and paying mine out to be rolled over into an IRA in 2005. Do I need to file a 5500 EZ terminate the plan?

2. If so, would it be a 2004 5500EZ or a 2005 EZ as the contribution and withdrawals will happen in 2005?

3. Anything else I should be aware of?

Thank you for your help.

Steve.

[wmyer]

Yes, you will need to file a 5500 EZ for the final year of the plan. If all the assets are emptied from the plan during plan year 2005, then the final 5500 would be a 2005 5500. The final form must be filed within 7 months after all the money is emptied out of the plan.