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Solo 401k – 5500-EZ
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8 Replies
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Top ForumsSolo 401k – 5500-EZ I have a solo 401K plan worth over 250K for now more than few years, I am a one person C Corp and was not aware of filing requirement. I never received any letter from IRS asking to file form 5500. I just got aware of this requirement this week, so I will be filing 550-ez first time.
My questions are do I need to file this form for previous years when my account was worth more than 250k? If yes, then how can I get penalty relief?
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Top ForumsSolo 401k, Daily Live Webinar
Yes a Form 5500-EZ must be filed for all prior years starting with the year when the balance first exceeded $250,000. See more regarding the Penalty Relief Program for Form 5500-EZ Late Filers
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Top ForumsSolo 401k – 5500-EZ
Thanks Mark for your response. I will like to ask one more question. I have a retirement plan in name of my C Corp with Fidelity but have two accounts, one for Profit Sharing/Solo 401(k) and another one for Money Purchase plan, which is frozen since last 10 years. I have not filled in 5500-EZ form since I was not aware. Now that I am getting ready to file with form 14704, my question is do I need to file two different 5500-EZ forms for each year, one for Solo 401(k) and another for Money Purchase or just one for both accounts since the name of plan is same for both accounts? I asked the same question to Fidelity twice and got different answers. What’s your opinion?
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Top ForumsSolo 401k, Solo 401k Contributions
In short, Just one form 5500-ez applies as long as it is the same employer (self-employed business). The money purchase plan (MPP) feature is communicated on Form 5500-ez using characteristics code 2C in Part IV.
You are referring to “paired plans” which is a profit sharing plan (PS) 401k and money purchase plan (MPP) which share in the same basic plan document (the plan rule book which outlines the terms of the plan). They also generally share the same Adoption Agreement.
MPPs are not as common since 2002 when the profit sharing contributions increased.
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Top ForumsSolo 401k – 5500-EZ
Thanks, Mark, for your response. I wish I knew about this couple of days ago. I already mailed delinquent 5500-ez forms from yrs. 2010 to 2021, form 13704, and $1500 check for both plans (Money Purchase Plan #002 and Profit Sharing/Self-employed 4019k for plan #003) in two separate envelopes to IRS. I did specify the code 2C in all the 5500-EZ forms for Money Purchase plan.
Is there a way I can ask IRS to return the second $1500 check for Money Purchase Plan and just use the first $1500 check sent in with Profit Sharing/Self-employed 401k envelope as penalty for both plans?
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