Solo 401(k), First 5500, DFVC

[401king]

Client was self-administering his solo-401(k) from 1/1/2015 (effective date) through 9/1/2017 (when employees became eligible). Since then, my company has been administering the 401k. Based on my conversations, I was under the impression that he was under the $250k threshold prior to this year (lesson learned - don't rely on client's assumptions). 

Assets on 12/31/2015 were <$80,000; assets on 12/31/2016 were >$250,000 but no Form 5500 was filed. I am now starting to work on the 5500 via DFVC but I have a few questions.

1. We do not need to file a 2015 5500, correct? (Nothing about DFVC will require a 2015 & 2016 5500?)

2. Should the delinquent 2016 5500 be filed on a 2016 Form, or 2017 Form?

3. This will be the first filing for a Plan effective 1/1/2015. Will my 2016 Plan Year be 1/1/2016 - 12/31/2016, or 1/1/2015 - 12/31/2016? (Including all contributions made for all years in this first 5500.)

4. The client should first file the late Form 5500 and subsequently (immediately) file and pay for the DFVC, correct?

Thanks!

[BG5150]

Why not just file a 2015 AND 2016 form?  I would do them on SFs as a one-participant plan.  It'll take 5 extra minutes to do the 2015 one.

Side note:  gotta love that gain!  Even with a $60,000 contribution,  that's over a $110,000 gain, 137%!

 

[Mike Preston]

How much was in the plan on 12/31/2016?

[401king]

11 minutes ago, BG5150 said:

Why not just file a 2015 AND 2016 form?  I

$750 DFVC fee to file the 2015 if it's not necessary. 

10 minutes ago, Mike Preston said:

How much was in the plan on 12/31/2016?

$504,000 as of 12/31/2016. There was nearly $300k in rollovers in 2016.

[BG5150]

So, if there were fewer than $250,000 at EOY 2015, then I wouldn't file it.  File 2016 as a first return/report.

[Mike Preston]

I think OP is confusing DFVCP (a DOL program) with Rev. Proc. 2015-32 relief (an IRS program).

1) Correct

2) 2016

3) 1/1/2016 - 12/31/2016

4) See this page:

https://www.irs.gov/retirement-plans/penalty-relief-program-for-form-5500-ez-late-filers

 

[401king]

Thank you all for your help.