5500 ez - Final Return NOT filled

[Guest yk5]

Hi,

I was solo participant in my corp's Solo 401K Plan. The assets were less than 100k so I never filled in 5500 forms.

In 2009 I dissolved the corporation and in August of 2010 rolled over 401k assets to IRA. Since the form 5500ez was not available at that time, I foolishly forgot to file FINAL 5500EZ FORM

Question:

1. Technically speaking, how will IRS or Labor Department will even know that I had to file 5500 (final) form?

2. Could I just file for 2010 full year (rather than short year), therefore avoiding the penalty? is there any way the IRS would know when my plan was terminated?

Please advise.

[Andy the Actuary]

Hi,

I was solo participant in my corp's Solo 401K Plan. The assets were less than 100k so I never filled in 5500 forms.

In 2009 I dissolved the corporation and in August of 2010 rolled over 401k assets to IRA. Since the form 5500ez was not available at that time, I foolishly forgot to file FINAL 5500EZ FORM

Question:

1. Technically speaking, how will IRS or Labor Department will even know that I had to file 5500 (final) form?

2. Could I just file for 2010 full year (rather than short year), therefore avoiding the penalty? is there any way the IRS would know when my plan was terminated?

Please advise.

It is advised you seek competent legal advice and not rely upon bulletin board comments in your situation.

[david rigby]

is there any way the IRS would know when my plan was terminated?

1099-R for 2009?

[K2retire]

is there any way the IRS would know when my plan was terminated?

1099-R for 2009?

Also the IRA will file form 5498 showing receipt of the distribution.

[Guest yk5]

Question:

I dissolved the company in 2009 (filled 1120s FINAL for 2009), but did the SOLO401K distribution in 2010.

Hence, if I file 5500ez for 2010, would this automatically trigger an inquiry from IRS why I have 2010 activity for a business that was closed in 2009?

Please advise.

[Bird]

I dissolved the company in 2009 (filled 1120s FINAL for 2009), but did the SOLO401K distribution in 2010.

Hence, if I file 5500ez for 2010, would this automatically trigger an inquiry from IRS why I have 2010 activity for a business that was closed in 2009?

No.

And if we're being honest on the original questions...well, they're very astute questions. I wouldn't encourage you to not file at all, but filing for a full year is pretty low-risk.

[mbozek]

Question:

I dissolved the company in 2009 (filled 1120s FINAL for 2009), but did the SOLO401K distribution in 2010.

Hence, if I file 5500ez for 2010, would this automatically trigger an inquiry from IRS why I have 2010 activity for a business that was closed in 2009?

Please advise.

The instructions for the 5500EZ (P3) state that the final 5500 form is filed for the year in which all assets are distributed from the plan. It seems to me that if the final distribution of assets from the plan does not take place until 2010 than 2010 is the year for whch the final 5500 EZ is filed.

I have a similar situation. Sole owner terminated a solo 401k plan in 2010 and rolled over all assets in the plan to an IRA before Dec 31, 2010. However, additional credits ($200) were deposited to the owner's 401k account on Jan 1, 2011 and were not rolled over to an IRA until March 2011. When is the final 5500 due? I say 2011. There is no 2011 5500-EZ form.