VirginiaTPA Posted July 8, 2021 Posted July 8, 2021 Start-up plan in 2020 expected to be a solo(k) plan covering only owner & possibly spouse (who did not work in 2020). Eligibility is age 21 & 3 months elapsed time, monthly entry dates. Owner actually hired a part-time employee in July 2020 who became eligible in November, and terminated in December. Testing determined no contributions were required for this NHCE employee. So the participant count on 1/1/20 was 1 (owner only) and count on 12/31/20 was 1 (owner only). Assets were under $250k the entire year. Does this plan need to file 5500-SF or can they use 5500-EZ and not file for 2020 due to assets under $250k?
Bri Posted July 8, 2021 Posted July 8, 2021 I vote SF - the plan itself covered someone not an owner during the year.
Jakyasar Posted July 9, 2021 Posted July 9, 2021 I vote SF too. Once you have the participant in the plan, you should report 1 terminated participant during the year with less than 100% vested. Same question in EZ as well but in my opinion, plan is not eligible for EZ. The question I have is what will happen in 2021 when the plan is eligible only for EZ filing and the assets are under 250K? Hmmm QKA, QKC, QPA, CBS - I used to be indecisive about pensions but now I am not so sure
Jakyasar Posted July 10, 2021 Posted July 10, 2021 Hi Mike No filing for 2020 or 2021? QKA, QKC, QPA, CBS - I used to be indecisive about pensions but now I am not so sure
BG5150 Posted July 14, 2021 Posted July 14, 2021 If you don't file for 2021, but remember, the client will probably get a letter some time asking where the filing is. Easily explainable, but still something to keep in mind. QKA, QPA, CPC, ERPATwo wrongs don't make a right, but three rights make a left.
chc93 Posted July 15, 2021 Posted July 15, 2021 12 hours ago, BG5150 said: If you don't file for 2021, but remember, the client will probably get a letter some time asking where the filing is. Easily explainable, but still something to keep in mind. For this reason, sometimes I think it's better to just keep filing the 5500-SF... even if it's on the DOL public website. Clients don't generally like letters from the IRS, and neither do I. And while easily explainable, still gotta do that... What I don't understand is right under the "year" in the upper right corner of the EZ, are the words "This Form is Open to Public Inspection". As far as I thought, anyone could get a copy of an EZ from the DOL Public Disclosure Room. Of course, not as easy to get as online, but still available.
BG5150 Posted July 15, 2021 Posted July 15, 2021 11 hours ago, chc93 said: For this reason, sometimes I think it's better to just keep filing the 5500-SF I would just file the EZ, not the SF. One participant plans are not allowed to file SFs any more. QKA, QPA, CPC, ERPATwo wrongs don't make a right, but three rights make a left.
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