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.
Form 5500ez Penalties
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Re: Form 5500ez Penalties
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
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
Re: Form 5500ez Penalties
Thanks so much! I registered. I'm going to look at the form tomorrow. I may post some questions.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
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- Posts: 11423
- Joined: Thu Dec 27, 2018 2:06 pm
Re: Form 5500ez Penalties
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
For example, here is Fidelity’s (look under the ‘Form 5500-EZ’ tab:
https://www.fidelity.com/retirement-ira ... /form-5500
Re: Form 5500ez Penalties
Thanks, I reviewed it, and also a Finance Buff article on this topic.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
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
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- Joined: Thu Dec 27, 2018 2:06 pm
Re: Form 5500ez Penalties
I haven’t done either so I can’t give you an answer.
Re: Form 5500ez Penalties
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
- 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