If you’re struggling to complete the Form 5500-EZ, you may want to read through a form 5500-EZ help guide. The information on this form is critical for the compliance of your retirement plans.
The guide will walk you through the steps to ensure that you complete the form accurately and completely. There are several common mistakes that can cause a failure to complete the form, so it’s important to get the information you need before starting.
The first step is to understand the instructions on page 2 of the Form 5500-EZ. It’s helpful to review frequently asked questions on the IRS’s website. If you’re still unsure about what you’re supposed to include, check out the FAQ section.
There you can find a detailed explanation of all the steps necessary to file your return and understand what the notice means. Using the help guide will help you to complete your Form 5500-EZ correctly the first time.
In this guide, we discuss who is exempt from filing form 5500. Let’s get started.
If you’re running a Solo 401(k) plan, you’ll need to file a Form 5500-EZ as well. If your plan was started before 2021, the deadline is July 31 of the following year. If you’ve set up the plan before that date, you’ll have until the next business day to complete it. It’s best to consult a professional accountant before filing this form.
Are you confused about the Form 5500-EZ filing requirements? You’re not alone. Many businesses are confused about these requirements, but this article is here to help. Learn what you need to know before filing this form.
By the end of the article, you’ll have all the information you need to make your Form 5500-EZ filing go smoothly. After all, your business is unique. In addition to meeting federal and state filing requirements, your Form 5500 should include any other information you wish to share with the IRS.
When filing Form 5500-EZ, plan administrators and employers must use the official IRS form. Blue or black ink is required, and a wet signature is mandatory. In addition, the administrator or employer must use the blank side of the Form 5500-EZ, and not include any schedules. You must retain the attachments. If you fail to comply with these filing requirements, you may face a penalty of $25 per day or up to $15,000!
The annual Form 5500-EZ filing deadline is different depending on your business type. A calendar-year plan must file its Form 5500-EZ filing by July 31. Likewise, a Solo 401k plan may have less than $250,000 in assets at the end of last year. In such cases, you need to enter the total plan liabilities, which include benefit claims payable, operating payables, and acquisition indebtedness, but not future distributions to participants.
Who Is Exempt From Filing Form 5500?
Form 5500 is a report filed by employers and plan administrators with the Department of Labor on behalf of employee benefit plans. The form contains information about the operations, financial condition, and qualification of the plan. It also serves as a source of data for other Federal agencies. Consequently, failure to file the form can lead to penalties.
The Form 5500 is filed with the Department of Labor and the Pension Benefit Guaranty Corporation for plans that are defined benefit pension plans. However, certain types of plans are not subject to Form 5500 filing requirements.
Plans that are not covered by ERISA are not required to file the Form 5500. These plans include welfare benefit plans, pension plans, and plans that are not self-insured. For example, church-sponsored 403(b) plans, apprenticeship plans, and top hat plans are all excluded from the filing requirements.
The Employee Retirement Income Security Act of 1974 governs the filing requirements for a plan. The law applies to plans that are self-insured or governed by the Department of Labor. For more details, consult EBIA’s ERISA Compliance manual.
The penalty for failing to file the Form 5500 can be steep. It can range from $25 per day for small plans, to up to $15,000 for larger plans. This penalty is indexed to inflation each year.
Employers who are late filing the Form 5500 may be able to reclaim themselves by enrolling in the DOL’s voluntary compliance program. The program allows employers to enter the program for a reduced penalty of $10 per plan per year.
There are many types of entities that are exempt from filing form 5500. Will take a look at a few of them below.
| SIMPLE IRA | Simple IRA’s fall under the IRA retirement rules. As such they are exempt from filing form 5500. So no need to worry about a simple IRA. |
| SEP | SEPs are very different plans from simple IRAs. However, because they still are in the IRA family, they are exempt from filing form 5500. |
| Assets below $250,000 | If the assets in your 401(k) plan are below $255,000 then you are exempt from having to file form 5500 EZ. However, be careful. if your 401(k) is combined with another retirement structure like a cash balance plan or defined benefit plan and the combined balance is exceed $250, you will have to file. Many people don’t know about this rule when combining plans. |