thepensionmaven Posted July 22, 2016 Posted July 22, 2016 Plan effective 1/1/14, only principals and wives, so no 5500 filing. 1/1/15, employee eligible and have to file 5500-SF. Box checked for first filing. Q- Because plan effective the prior year and there is a participant count at 1/1/15, the IRS will probably send out a Notice, why are participants and money in the plan as of the beginning of the plan year? And then do the merry-go-round explanations to/from IRS? Suggestions, rather than submit and see what happens?
ETA Consulting LLC Posted July 22, 2016 Posted July 22, 2016 No suggestion. Just submit and see what happens. This actually happens all the time. Sometimes, they may send a letter, which requires an extra step of providing them an explanation. It's just one of those unfortunately imperfect situations we deal with. "Merry-go-round" may be a bit of an overstatement. Then again, it may be a bit of an understatement :-) Good Luck! Lou S. 1 CPC, QPA, QKA, TGPC, ERPA
Lou S. Posted July 22, 2016 Posted July 22, 2016 Shouldn't be an issue. But if you do get noticed, let the merry-go-round begin. Should be a simple matter of 1 letter stating plan was not required to file in 2014 and why it wasn't.
RatherBeGolfing Posted July 23, 2016 Posted July 23, 2016 I agree, should't be an issue. I have had the same situation on quite a few plans and it has never been questioned. On the other hand, if you end up with only owner+spouse again and go back to EZ, they might ask where your 5500 is if you decide to not file because you are under $250,000. It is still a one letter explanation though...
ETA Consulting LLC Posted July 25, 2016 Posted July 25, 2016 Partnership or S/C-Corp? I wasn't going to ask, but I know what you're getting at :-) CPC, QPA, QKA, TGPC, ERPA
ETA Consulting LLC Posted July 29, 2016 Posted July 29, 2016 S corp Are you sure they're not subject to ERISA? When making this determination, a plan covering only partners of a partnership is different from a plan covering owners of a corporation. Good Luck! CPC, QPA, QKA, TGPC, ERPA
Mike Preston Posted July 29, 2016 Posted July 29, 2016 If it is an S-corp then a 5500-SF was required for 2014. Hie thee to DFVCP.
BG5150 Posted August 1, 2016 Posted August 1, 2016 S corp Are you sure they're not subject to ERISA? When making this determination, a plan covering only partners of a partnership is different from a plan covering owners of a corporation. Good Luck! Where does it say that? I've heard it mentioned, just never seen it in print/ QKA, QPA, CPC, ERPATwo wrongs don't make a right, but three rights make a left.
ETA Consulting LLC Posted August 1, 2016 Posted August 1, 2016 When you look at the instructions on "Who may file a Form 5500EZ", there is a clear differentiation for "Partners in a Partnership". So, if you and I are both 50/50 owners of an S-Corp (and are the only employees), then we do not get the option to file a Form 5500EZ. Good Luck! CPC, QPA, QKA, TGPC, ERPA
Belgarath Posted August 1, 2016 Posted August 1, 2016 There was some discussion on this topic just a few weeks ago.http://benefitslink.com/boards/index.php/topic/59219-one-participant-plan-or-not/ ETA Consulting LLC 1
ETA Consulting LLC Posted August 1, 2016 Posted August 1, 2016 There was some discussion on this topic just a few weeks ago. http://benefitslink.com/boards/index.php/topic/59219-one-participant-plan-or-not/ And, of course, I remember the conversation. I never learned to add a link to another conversation into a current discussion. As a result, I often find myself merely speaking to what's right there in front of me at that single point in time :-) It's a bad habit, I know. It has to drive the bandwidth through the roof Good Luck! CPC, QPA, QKA, TGPC, ERPA
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