5500-ez

[PFranckowiak]

I the past we have always file a 5500-EZ, regardless of the amount of plan assets.

Last year one of the clients forgot to send his in. No harm under 250,000.

We are rethinking whether or not we should file this client this year 2012 or just not file at all until the final return.

Also looking at the few other ones under the 250,000 asset value to determine if we should file this year or just stop filing.

What are the rest of you doing?

Thanks

Pat

[Andy the Actuary]

Your question is whether the exemption may be applied at pleasure from year to year. I'd take the position of continuing not to file but not being shocked if the IRS sent me a personalized form letter. If you file now but have a gap year, that might prompt the question of where the missing form is, and the question is whether a filing can be late when it is not required to be filed at all.

[Bird]

We don't file until assets are over $250K. I don't there could be any harm (penalty) for the non-filed form in your case, except for the likely hassle in explaining it.

[Peter Gulia]

Just to present another outlook, some employers with these plans like to file some kind of Form 5500 (even if not required), hoping that doing so might set up a statute-of-limitations defense or argument, just in case it might be helpful some time years later.

[PFranckowiak]

That is why we filed them in the past, now I am just seeing what people are doing now as I have a few new ones.

P