Going from EZ to 5500 back to EZ

[Guest nmull22]

Have a 2 participant Husband/Wife plan that was initially filing a 5500-EZ. Hired an employee at some point and began filing 5500's. Employee eventually termed and paid out in '09 so they are eligible to file an EZ again beginning in '10.

Here's where I'm uncertain: As far as I'm aware the EZ's don't go to the DOL and I have little faith that the IRS and DOL communicate closely enough to realize what's going on (yeah, I'm cynical, so what ). Will the DOL come looking for the 2010 5500 since the 2009 was not filed as 'final'?

[Lou S.]

Maybe, but in theory you shouldn't.

We had a plan like this about 4 years ago and never got a letter when we switched from Filing a 5500 to filing an EZ but I don't know if that is the norm or we just got lucky.

Worst case is you get a letter and send them a copy of the EZ with proof of timely filing.

[ETA Consulting LLC]

You should be fine going back to the E-Z. Your question is simply whether or not this plan is an ERISA plan. Without a rule stating 'once ERISA, always ERISA' you are to presume that the plan is no longer subject to Title I when the plan no longer covers a 'common law' employee.

All references on the Form 5500 would suggest coverage to be in the present tense (e.g. plan that covers only owners, or owners and spouses). Had the provision stated plans that have never covered anyone other than owners or their spouses, then it would have implied 'once ERISA, always ERISA'.

I would feel safe, but wouldn't be surprised if the DOL ultimately sent a letter asking where is the return. LOL

Good luck!

[Bird]

Somehow I think that they actually do communicate on this issue; I can't recall a specific plan where we went from 5500 to 5500EZ filing but I'm pretty sure we have done one without incident. And the worst case, as noted, is that you just write back and explain that it's now an EZ filing.