Form 5500ez Penalties

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Topic Author
catchinup
Posts: 660
Joined: Sun Dec 31, 2017 5:35 pm

Form 5500ez Penalties

Post by catchinup »

I set up my own 401k plan to allow me to do Mega Back Door Roth contributions.

I understand this requires me to file form 5500 ez annually. I just read on the instructions about failure to file penalties of $250/day.

Has anyone here forgotten to file and received such penalties?

https://www.irs.gov/instructions/i5500ez

I need to file this form for 2020. It will be my first year filing. I guess I will file it via certified mail, but this makes me very nervous.
HomeStretch
Posts: 11423
Joined: Thu Dec 27, 2018 2:06 pm

Re: Form 5500ez Penalties

Post by HomeStretch »

You only need to file Form 5500-EZ by 7/31/21 for 2020 if plan assets were $250k+ at 12/31/20. You can file Form 5500-EZ electronically through the DOL’s EFAST2 system which gives you immediate proof of timely filing.

File early. All the information you need to file is available now so you have ~3 months to make a timely filing.

There is a penalty relief program that may be available to late filers:
https://www.irs.gov/retirement-plans/pe ... ate-filers
Topic Author
catchinup
Posts: 660
Joined: Sun Dec 31, 2017 5:35 pm

Re: Form 5500ez Penalties

Post by catchinup »

HomeStretch wrote: Tue May 04, 2021 10:23 pm You only need to file Form 5500-EZ by 7/31/21 for 2020 if plan assets were $250k+ at 12/31/20. You can file Form 5500-EZ electronically through the DOL’s EFAST2 system which gives you immediate proof of timely filing.

File early. All the information you need to file is available now so you have ~3 months to make a timely filing.

There is a penalty relief program that may be available to late filers:
https://www.irs.gov/retirement-plans/pe ... ate-filers
Thanks so much! I registered. I'm going to look at the form tomorrow. I may post some questions.
HomeStretch
Posts: 11423
Joined: Thu Dec 27, 2018 2:06 pm

Re: Form 5500ez Penalties

Post by HomeStretch »

Some Solo 401k providers have online information to assist with completing Form 5500-EZ (do an internet search).
For example, here is Fidelity’s (look under the ‘Form 5500-EZ’ tab:
https://www.fidelity.com/retirement-ira ... /form-5500
Topic Author
catchinup
Posts: 660
Joined: Sun Dec 31, 2017 5:35 pm

Re: Form 5500ez Penalties

Post by catchinup »

HomeStretch wrote: Sun May 09, 2021 6:23 am Some Solo 401k providers have online information to assist with completing Form 5500-EZ (do an internet search).
For example, here is Fidelity’s (look under the ‘Form 5500-EZ’ tab:
https://www.fidelity.com/retirement-ira ... /form-5500
Thanks, I reviewed it, and also a Finance Buff article on this topic.

There does not seem to be any distinction on this form between employee tax deferred contributions and employee after tax contributions.

For example, if in 2020, as employee I contributed $26K tax deferred and $17K as voluntary after tax, the total participants contribution in line 7b would be 43K?

Am I also correct there is no line on the form to show in-service distributions? Thanks
HomeStretch
Posts: 11423
Joined: Thu Dec 27, 2018 2:06 pm

Re: Form 5500ez Penalties

Post by HomeStretch »

I haven’t done either so I can’t give you an answer.
sgm7091
Posts: 88
Joined: Mon Dec 30, 2019 9:42 pm

Re: Form 5500ez Penalties

Post by sgm7091 »

I am doing first time too and my solo-401k plan is with Fidelity.

- EFAST2 this year allows 5500EZ electronic filing so shorter form to fill
- Many internet sites have info, including the fidelity link shared earlier
https://www.solo401k.com/how-to-file-form-5500-ez/
https://www.mysolo401k.net/solo-401k/co ... 0-ez-faqs/
https://www.whitecoatinvestor.com/irs-form-5500-ez/
- I transferred my solo-401k from another provider to Fidelity in Feb, 2020, so my interpretation is to use beginning balance = from previous provider eoy balance, Fidelity statement includes ending balance, I also rolled over some and have info of those thru 1099-R's
- Pension code was a confusing things, researched and also called Fidelity, will likely use: 2E, 2J, 2R, and 3D. Mine is a individual 401k Plan
- Effective of date of plan will be original plan date with previous provider, Plan number with previous and Fidelity same i.e. 001
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