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Posted

A Form 5500-SF was filed for a 1 participant plan for 2010 and 2011. The 1 participant is the 100% owner of the corporation that sponsors the plan. The plan has always had less than $75,000 of assets.

They should be eligible to file a 5500-EZ. The question is, would they be able to file no return since they are 5500-EZ eligible but have assets less than $250,000? In other words, are they eligible to not file given they already electronically filed in the past?

Thanks.

Posted

They're eligible to not file. Someone would definitely have to 'splain it when they get a letter in a couple of years.

Ed Snyder

Posted

Is the funding structure of the plan really wacky?

If not, I'd just assume keep filing SOMETHING, because, like Bird said, someone is gonna get a letter in a year or two asking where the 5500 is.

What's it take, maybe 2 minutes to fill in an EZ and 46 cents to mail it?

QKA, QPA, CPC, ERPA

Two wrongs don't make a right, but three rights make a left.

Posted

It doesn't take much to write the letter, either. Draft it now while the information is fresh, and send it in when the time comes.

Alternately, if the plan is likely to grow to where 5500's will be required in a few years, then I'd lean towards BG's suggestion to simply keep filing, although (spoiler alert) if the USPS gets its 3 cents in, it will cost 49 cents in January.

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