5500EZ filing

[Gary]

It is clear that a one-participant plan sponsor can be exempt from filing the 5500EZ if plan assets are and always have been under 100k.

However, such a sponsor always has the option to file.

The question is:

If say a plan sponsor files a 5500EZ in its first year, does that sponsor have to file the 5500EZ in the 2nd year if plan assets have always been < 100k?

That is, could the sponsor elect to not file the return in the 2nd year?

I do not see any explicit reason that would preclude a plan sponsor from choosing to NOT file, but wanted to get other thoughts and experiences.

Thanks.

[Guest Pensions in Paradise]

I am not aware of any rule which would preclude the sponsor from NOT filing in subsequent years. Remember though that the sponsor must file in the final plan year.

Even if the sponsor is not required to file, I would recommend they file so that the statute of limitations can start. If a Schedule P is not filed for a particular year, then that year remains open for audit forever.

[WDIK]

I agree that there does not seem to be a reason why the second filing could be skipped. However, such an approach places the filer in the position of Lucy to the EBSA's Ricky. (In other words, you got some splainin' to do.)

[Guest billkalke]

I have always believed that at least a 5500EZ had to be filed if a Schedule B is due, else there wouldn't be anything to attach it to. Or has the thinking on this changed?

[SoCalActuary]

The actuary is required to maintain a funding standard account, but is not required to file it with the IRS unless the 5500 is filed. So, no I don't think you have to file in the second year.

In my experience, if you file a 5500-EZ under $100k, such a filing sometimes produces a letter from EBSA telling you you don't have to file.

[could be me maybe not]

I would second WDIK's comments and add that you will also need to speak many foreign languages, obtain a power of attorney, and be able to decode the government computer to get off their mailing list.

I actually called a couple of years ago about the question of the need to file the Schedule B if no 5500 was required and I stumped the panel. The people at IRS I spoke to never considered that dilemna and told me I had found an apparent loophole. Try splainin this to them when they come lookin for future ones.

PIP, does anybody actually do that, file a final return only?

[Effen]

PIP, does anybody actually do that, file a final return only?

I've done it.

[JanetM]

You MUST begin filing when assets exceed 100K mark and continue even if the assets drop below the 100K mark.

Would interpret the rule then to be - once you begin filing you must continue.

[Guest Pensions in Paradise]

cbmmn (aka monkey face) - for our clients we ALWAYS file, even if they are otherwise exempt. Our main concern is the statute of limitations.

But my guess is that most one-person plans under 100K never file.

[could be me maybe not]

PIP, is this not discrimination? Janet was in fact the inspiration behind the addition of my handsome studio portrait. I haven't seen any name calling directed to her.

[Guest Pensions in Paradise]

My apologies. It is indeed a very nice portrait.