Final Form 5500EZ

[Gary]

A plan sponsor of a one participant plan distributed plan assets on 6/1/08. Plan was terminated 1/31/08.

Their plan year had been 2/1 to 1/31.

We prepared the pension return for the PYE 1/31/08.

We now have a final return as a result of the distribution of plan assets. No Schedule B required.

Can we use the 5500EZ for 2007 for the final return for the 2008 plan year or do we have to wait for the 2008 5500EZ, which may not be available until the spring of 2009 or so?

[JAY21]

From an experience standpoint (vs. any reading of instructions) we tried to file a final 5500-EZ for a 2007 year some months back using "marked up" 2006 forms (cross-outed the 2006 and wrote in 2007) and it was rejected.

We had done this previously a lot in past years and never had a problem but it seems like that isn't working now.

[JanetM]

We used to mark them up too. Now the instructions say this.

"If you are filing a final return, and the form is not released by the due date of the final filing, use the most current-year form that is available. If there are any changes to the questions on the new form, the EBSA may request further information from you.

Caution:

The 2007 Instructions for Form 5500 specify that certain plans may not use the 2007 forms to satisfy their 2008 filing requirements for a short plan year. The agencies are expected to provide additional guidance in this regard in early 2008."

Search of IRS site found nothing.

[Lori Friedman]

Gary, are you using a software program to prepare the return, or will you use paper forms?

Your situation isn't unusual. As you're aware, the Form 5500-EZ due date clock begins ticking at the end of the plan's termination month. It's very common to file a final return long before the applicable year's forms become available.

Using software, I've never had any problems with filing the "wrong" year's forms. Enter the short plan year's beginning and ending dates for the Form 5500-EZ heading. The dates become embedded in the barcode at the bottom of each page.

You might want to cross out the printed year, and write in the correct year, to clarify your client's copy of the return. But, doing so won't have any effect at the Dept. of Labor. The return gets put into a machine that reads the barcodes; your changes to the return's printed information won't register.

[Andy the Actuary]

Gary, are you using a software program to prepare the return, or will you use paper forms?

Your situation isn't unusual. As you're aware, the Form 5500-EZ due date clock begins ticking at the end of the plan's termination month. It's very common to file a final return long before the applicable year's forms become available.

Using software, I've never had any problems with filing the "wrong" year's forms. Enter the short plan year's beginning and ending dates for the Form 5500-EZ heading. The dates become embedded in the barcode at the bottom of each page.

You might want to cross out the printed year, and write in the correct year, to clarify your client's copy of the return. But, doing so won't have any effect at the Dept. of Labor. The return gets put into a machine that reads the barcodes; your changes to the return's printed information won't register.

I use Corbel Relius software to prepare 5500EZs and, like Ms. Friedman, have experienced no problems with filing the final 5500EZ before the appropriate form is available.

[JanetM]

You can't mark the form up. It is machine read. 5500 preparers manual says IRS was supposed to issue guiadance in early 2008.

I have searched and found nothing. I am going to say the reason the instructions read that way do is because 2008 was originally the year we were all to filed electronically. Since that has been delayed until 2009 I think if you used to used the 2007 form to file 2008 final you would be okay. If not EBSA will send you a letter.

[Gary]

My recollection was that the IRS may not have want us to use the 2007 form for 2008 because the 2008 form is supposed to be much different, with the new names of the forms, i.e. Schedule SB, etc.

Sure we can always push it through and see what comes back.

Thanks.

[Blinky the 3-eyed Fish]

You only can't use 2007 forms for 2008 if you have to file a Sch SB. You say the plan terminated 1/31, the last day of the plan year. Thus, you don't have to file a Sch SB for 2008 and can file 2007 forms.

I know there is some other multiple employer schedule or something too that requires 2008 forms to be filed, but I don't want to take the time to look it up.