5500EZ (Sole Prop.)

[Guest Rachael L.]

We currently have a "one-man" PS Plan that we are filing a Form 5500EZ for. Now the participant has reached 72yrs old and will be taking out more money from the Plan than his normal deductions. If the Plan assets drop below the $250,000 required minimum do we still need to continue to file the 5500EZ or can we stop filing once the assets fall below the $250,000?

Thanks in advance for your help!

-Rachael

[masteff]

can we stop filing once the assets fall below the $250,000?

The rules changed from the 2006 instructions to the 2007 instructions.

2007 Form 5500EZ instructions say:

Who May Not Have To File

You do not have to file Form 5500-EZ (or Form 5500) for a plan year (other than the final plan year) that begins on or after January 1, 2007, if you meet the five conditions above and you have one or more one-participant plans that separately or together had total assets of $250,000 or less at the end of that plan year.

As it explicitly says "of that plan year" and as the instructions previously stated "of every plan year", they have made a distinct change allowing you to stop filing (until the final return).

[Guest Rachael L.]

Thanks a ton. I really appreciate it!

-Rachael