Can I file 5500 instead of 5500EZ?

[AKconsult]

I have a client who is able to file an EZ. However, he has not prepared any filings since the plan's inception, 2002. He rolled a very large amount into the plan in 2002 so he is not eligible for the waiver of the filing.

Since the IRS deals with the EZ, I am thinking that if I prepare all the delinquent filings and send them in to the IRS then the client is at their mercy and could potentially get hit with a very large penalty.

On the other hand, if I file a 5500 instead I can go in under the DFVCP and pay $1,500 up front and be done.

Does this make sense? Can I file a 5500 even though technically the client meets the criteria for the 5500ez? If I file a 5500, am I then obligated to keep filing 5500s, rather than switching to 5500EZ in later years?

[WDIK]

As I understand the requirements for DFVCP, it is not a matter of whether you file Form 5500 or Form 5500-EZ, it is a matter of whether or not Title I applies.

[PensionPro]

According to the DOL, Form 5500 filers for plans without employees (as described in 29 CFR § 2510.3-3(b) and ©) are not eligible to participate in the DFVCP because such plans are not subject to Title I of ERISA.

[BG5150]

How much did he roll over, and what was the account worth at the end of 2007?

If it's over $100,000 I think you HAVE to file a 5500 instead of an EZ.

(I ask this because you said the rollover was a "very large amount.")

[WDIK]

If it's over $100,000 I think you HAVE to file a 5500 instead of an EZ.

I do not think that the value of the plan assets is pertinent in determining which form to file.

[Guest Sieve]

We're mixing apples & oranges here.

Starting in 2007, the floor for filing the 5500-EZ was raised to $250,000--below that, no EZ filing is required. But eligibility for EZ filing is based on status of the employer, not on the amount of assets in the plan (as WDIK correctly indicates)--e.g., a plan subject to ERISA (corp. with 5 participants) with just $50,000 in assets will not be eligible to file an EZ.

Likewise, eligibility for DFVCP is based on status of employer (i.e., whether or not the entity is subject to Title I of ERISA), NOT on what Form 5500 series is filed.

So filing a Form 5500 doesn't make you subject to ERISA if you aren't, well . . . subject to ERISA in the first place. You cannot "file" your way into DFVCP eligibility.

[AKconsult]

Thanks for all the input. This was very helpful.