Final year 5500-EZ, plan also funded.

A Dr. has a plan.  He is a sole member entity.  He took a position with a larger medical practice starting Jan 1, 2023.  He fully funded his plan for 2022.  There is no reason we need to keep the plan open past 12/31/2022, right?  The 2022 contribution money is in and now want's to roll everything out and into an IRA to close the plan before the year end so he doesn't have a 2023 administration.  No problem right?  

- Roll everything out into the IRA
- Generate a 1099-R for the rollover
- File a final form 5500-EZ for 2022

Thanks

(There is so much good info to learn when you start clicking on posts in all message board areas! I find myself getting into topics that I did not intend to and before you know it you have forgotten why you are here)

Sounds correct.

One potential pitfall I'm not sure about is that if he's a sole proprietor his income isn't technically earned until 12/31 I believe so I'm not sure what the IRS position would be on his 415 pay for the year is if the termination date is before 12/31.

4 hours ago, Lou S. said:

Sounds correct.

One potential pitfall I'm not sure about is that if he's a sole proprietor his income isn't technically earned until 12/31 I believe so I'm not sure what the IRS position would be on his 415 pay for the year is if the termination date is before 12/31.

Maybe do an in-service distribution (if the plan allows) but still set the plan term date as 12/31/2022 to get the income for the year.