Solo401k Do I need to send a form 5500ez?

[Breakdown65]

Hi,

In 2017 I  created a solo401k for my c corp where I am the sole owner/operator. I then maxed out my solo 4o1k. I closed the corp at the end of 2017 and created a new corp, which is now a s -corp. Ascensus sent me a form that effectively rolled my plan over. It is the same plan with a new corp name and a new FEIN.

I hired Ascensus to create the boilerplate solo401k plan and they do very little administrative work. They felt that  I did not have to send the IRS a 5500ez stating that the 401k was terminated. But now I am starting to get nervous that they are wrong. I believe I have until July to figure this out. Can anyone help me out here?

[RatherBeGolfing]

If you terminated the plan and distributed the assets, you need to file a final Form 5500-EZ.  

Did you distribute the assets of the plan in 2017?

 

[Breakdown65]

No I did not distribute the assets. They are still at the brokerage house.

[Breakdown65]

The brokerage works closely with Ascensus and they have both updated the name that the funds are held under. The thing that confuses me is that the FEIN has changed. Essentially they are two completely different business. One now closed. They have me as the benefiary.

[RatherBeGolfing]

Ok, since you didn't distribute the assets in 2017, no final form 5500-EZ is required for 2017.  If you distribute the assets in 2018, a final form 5500-EZ for 2018 will be required.

So Company A sponsored the 401(k) plan in 2017.  Company A also closed in 2017 and you started Company B.  Did Company B take over as sponsor of the 401(k) plan for Company A?  Or did you actually terminate the 401(k) plan with the intent of distributing the assets (like a rollover to an IRA for example)?

 

[Breakdown65]

Company B took over the plan as sponsor from company A. They are still at the brokerage and I did not roll the assets over to IRA.

[Lou S.]

If your new corp simply assumed sponsorship under an amendment or resolution of your old plan, you have one plan that had a change of sponsorship.

If you are the only eligible participant and assets are under $250,000 you are not required to file form 5500-EZ

If you formally terminated your old plan and rolled the assets to a new company plan then you need to file a final Form 5500-EZ for the terminated plan event if the assets are under $250K

 

[RatherBeGolfing]

What Lou said. 

[Breakdown65]

Looks like I don't have to file 5500ez at this time. Thank you so much for your input!

 

[thepensionmaven]

Agreed.