Solo 401k, never filed 5500

[Jakyasar]

Hi

I am sure this is the first time it is happening

New client (husband & wife only) set up a DB plan for 2022 and literally signed the documents yesterday. No need to file 5500 forms but do I need to file PBGC for 2022? Yes, they are covered by PBGC.

I was told that they had SEP all this time. Yesterday, before preparing the documents, found out that they have a solo 401k plan and not a SEP. Caught it in time to set the plan # properly for the db plan.

Deduction is not an issue.

Solo 401k plan has 800k in assets and never filed 5500 forms - this plan is with a reputable brokerage house.

Did a bit of math and figured out that they exceeded 250k 7, may be 8 years ago and no one told them that they had filing obligations, quelle surprise!

Other than filing with DVFC, anything else I should be aware of? Do not care about the documents etc as I am not taking over the plan, just helping with the 5500 forms?

Thanks

[Lou S.]

For EZ it's technically the IRS penalty relief program not the DOL DVFC program but yes you essentially have it correct. https://www.irs.gov/retirement-plans/penalty-relief-program-for-form-5500-ez-late-filers

For PBGC see instruction when to file. https://www.pbgc.gov/sites/default/files/documents/2022-premium-payment-instructions.pdf

It's typically the later of the normal dead line or 90 days after the adoption.

[Jakyasar]

Tx Lou