First time form 5500-EZ questions

[Guest spope3]

Hello everyone,

I'm in the position of filing for the first time form 5500-EZ for my one-participant

plan. The plan is hosted at Charles Schwab based on their prototypes; its history

is that it started as a Keogh, was restated (GUST-converted) to a QRP, and then

restated again as a Solo 401(k).

My questions are very basic:

Line 2(b) and 3(b), employer EIN and plan administrator EIN

-- is it okay that these be the same number (the EIN I've

always associated with this plan, since it was a Keogh)? Or

does a plan administrator need to have a separate EIN?

Line 6 -- is "profit sharing plan" correct? It seems more

applicable than ESOP, money-purchase plan, or stock bonus

plan.

Line 10b -- "Enter the total cash contributions received by

the plan during the year and the contributions owed to the

plan at the end of the plan year". I made part of my 2005

contribution in 2005, and part in 2006. Do I include only

the first part, or both?

Thanks much,

Steve

[WDIK]

Line 2(b) and 3(b), employer EIN and plan administrator EIN

-- is it okay that these be the same number (the EIN I've

always associated with this plan, since it was a Keogh)? Or

does a plan administrator need to have a separate EIN?

If the employer and plan administrator are the same entity they will have the same identification number.

Line 6 -- is "profit sharing plan" correct? It seems more

applicable than ESOP, money-purchase plan, or stock bonus

plan.

Yes.

Line 10b -- "Enter the total cash contributions received by

the plan during the year and the contributions owed to the

plan at the end of the plan year". I made part of my 2005

contribution in 2005, and part in 2006. Do I include only

the first part, or both?

If you are filing on a cash basis, only include those amounts actually contributed during the year. If you are filing on an accrual basis, include all contribution that apply to the filing year.

When you say "First time" are you saying that this is the first filing that has ever been made for your plan, or is it your first time completing the form?

[Guest Pensions in Paradise]

Just wanted to expand on WDIK's responses.

With regard to the EIN, you should have two different EIN's altogether. One EIN for the employer/plan administrator (assuming they are the same which is usually the case with one person plans), and a separate EIN for the trust.

With regard to line 10b, I recommend filing on an accrual basis. That way the 5500 will reflect the same numbers as your personal tax return. Just my personal preference.

Don't forget to file Schedule P also. That form starts the statute of limitations.

[Belgarath]

PIP - your last line brings up a question I was muddling with yesterday.

Now that the IRS specifically tells you not to file the P if you are an EZ filer (but you should sign, date, and keep in your records) is it necessary to file the P to start the running of the statute of limitations?

Common sense tells me that this should be sufficient, but I've seen nothing from the IRS specifically indicating that. However, I'd like to think that if it ever DID go to court, that you would prevail in an argument that the statute starts running with the signed but unfiled P.

Any thoughts on this?

[WDIK]

http://benefitslink.com/boards/index.php?showtopic=32103

(See the first post with respect to the statute of limitations.)

(See subsequent posts for various opinions and additional banter.)

[Guest spope3]

"When you say "First time" are you saying that this is the first filing that has ever been made

for your plan, or is it your first time completing the form?"

It is both. This is the first year the assets in the plan were sufficient to

require filing.

Thank you to everyone for your replies.

Steve