Form 5500EZ

[UtahCPA-APA]

If a company is winding down, and the owner terminates all employees except himself and distributes all accounts except his own from a profit sharing plan, when does the plan become a one-participant plan eligible to file Form 5500EZ, if ever? Can he file a Form 5500EZ in the year all other participants are paid out, because at the end of the year it meets all of the requirements of a one-participant plan? I want to file an EZ, because the only remaining assets are disqualified assets and he doesn't have a large enough bond to cover, so he would have to have an audit.

[ETA Consulting LLC]

Can he file a Form 5500EZ in the year all other participants are paid out

No, but he can file one in the following year.

Good Luck!

[K2retire]

I want to file an EZ, because the only remaining assets are disqualified assets and he doesn't have a large enough bond to cover, so he would have to have an audit.

It would probably be considerably cheaper to increase the bond than to pay for an audit.