5500 SF to 5500EZ

[FishOn]

We have a SH plan where the business has sold. The employees now work for new company and all have rolled over to the new company's plan.  Only the former owner remains and wants to keep the plan - so it is essentially back to being a soloK next year for 2024.  I have reviewed the instructions for the 5500SF and EZ and only see the requirements for being eligible to file 5500EZ.  Does the owner have to keep filing 5500SF or can he start filing 5500EZ?

[Bri]

He can do an EZ the year after the plan was still Title I.  So if all the payouts done in 2023, then 2024 would be an EZ just for the one-participant plan.

[BG5150]

How much money is in the plan?  Does he even have to file?

[FishOn]

The plan assets would be greater than $250K.

[WantsToLearn]

@BG5150 If the plan is under $250K should the owner file one additional year as 5500EZ to indicate the plan as owner only and under $250K? 

 

[BG5150]

They don't have to.  But I always continue to file.  10 minutes of work every year is less than than it's gonna take going back and forth with the IRS as to why the form doesn't have to be filed in the first place.

[Peter Gulia]

And filing something gets a statute-of-limitations period running.

[RatherBeGolfing]

1 minute ago, Peter Gulia said:

And filing something gets a statute-of-limitations period running.

Just don't file it late if you were not required to file.  I have dealt with far too many late EZs over the years.  The IRS does not care that you were not required to file, if you file late you will have to pay the penalty or correction program user fee.