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Posted

A defined benefit plan once had 5 participants and all but the owner were paid their vested benefits 4 years ago.

We have been filing a 5500 just reporting one participant.

Is it possible to switch to a 5500-EZ now as the plan only covers the owner?

Thanks.

Posted

Yes. I've been pleasantly surprised to not get correspondence about "where is your 5500" in the year of the change, so it seems they recognize the switch.

Ed Snyder

Posted

Please clarify. Is there only one employee or are there multiple employees (i.e., owners) but all but one were distributed their benefits?

If you have more than one eligible employee, it would seem you would need more than just one participant to satisfy 401(a)(26).

The material provided and the opinions expressed in this post are for general informational purposes only and should not be used or relied upon as the basis for any action or inaction. You should obtain appropriate tax, legal, or other professional advice.

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