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| Effective for calendar plan year 2005, filers of Form 5500-EZ will not be required to file any schedules or attachments (including the Schedule B (Form 5500)). Filers, however, will be required to collect and retain completed and signed Schedules B and P, if applicable. |
| This change does not eliminate the requirement to both perform an annual valuation and maintain the funding standard account for all plans subject to the minimum funding requirements of IRS section 412. |
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| Under the computerized ERISA Filing Acceptance System (EFAST), you can choose between two computer scannable forms to complete and file your 2005 Form 5500-EZ: "machine print" and "hand print." Machine print forms are completed using computer software from EFAST approved vendors and can be filed electronically or by mail (including certain private delivery services). Hand print forms may be completed by hand, typewriter or by using computer software from EFAST approved vendors. Hand print forms can be filed by mail (including certain private delivery services); however they cannot be filed electronically. For more information, see the instructions for How To File on page 2. |
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| To reduce the possibility of correspondence and penalties, we remind filers that: |
- Paper forms must be obtained from the IRS or printed using software from an EFAST approved software developer.
- Hand print and machine print forms generated by EFAST approved software will not be processed if they are printed out blank, or with limited information, and then completed by pen or typewriter. Only official hand print paper forms printed by the IRS may be completed by pen or typewriter.
- All information should be in the specific fields or boxes provided on the forms and schedules. Information entered outside of the fields or boxes may not be processed.
- Filings using photocopies of the computer scannable forms and schedules may be returned or cause correspondence requiring additional information.
- Do not use felt tip pens or other writing instruments that can cause signatures or data to bleed through to the other side of the paper. One-sided documents should have no markings on the blank side.
- Paper should be clean without glue or other sticky substances.
- Do not staple the forms. Use binder clips or other fasteners that do not perforate the paper.
- Do not submit extraneous material or information, such as arrows used to indicate where to sign, notes between preparers of the report, notations on the form, e.g., "DOL copy," etc.
- Do not attach or send any payments to EFAST.
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| If you need assistance completing this form, want to confirm the receipt of forms you submitted, or have related questions, call the EFAST Help Line at 1-866-463-3278 (toll-free) and follow the directions as prompted. The EFAST Help Line is available Monday through Friday from 8:00 am to 8:00 pm, Eastern Time. |
How To Get Forms and Publications Return to top
|
| Personal computer. |
| You can access the IRS's Internet website 24 hours a day, 7 days a week at www.irs.gov to: |
- View forms, instructions, and publications.
- See answers to frequently asked tax questions.
- Search publications on-line by topic or keyword.
- Send comments or request help by email.
- Sign up to receive local and national tax news by email.
|
| By phone and in person. |
| You can order forms and IRS publications by calling 1-800-TAX-FORM (1-800-829-3676). You can order EBSA publications by calling 1-800-998-7542. In addition, most IRS forms and publications are available at your local IRS office. |
General Instructions
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| Form 5500-EZ is a simpler form that you can use if you have a one-participant retirement plan and you meet the five conditions listed under Who May File Form 5500-EZ. If you do not meet the five conditions, see Form 5500, Return/Report of Employee Benefit Plan, for reporting requirements. |
| Retirement plans can be either defined contribution plans (which include profit-sharing plans, money purchase pension plans, stock bonus plans, and employee stock ownership plans (ESOPs)) or defined benefit pension plans.
|
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| You may file Form 5500-EZ instead of Form 5500 if you meet all of the following conditions: |
- The plan is a one-participant plan. This means either:
a. The plan only covers you (or you and your spouse) and you (or you and your spouse) own the entire business. (The business may be incorporated or unincorporated); or
b. The plan only covers one or more partners (or partner(s) and spouse(s)) in a business partnership.
- The plan meets the minimum coverage requirements of section 410(b) without being combined with any other plan you may have that covers other employees of your business. See the instructions for line 14c for more information.
- The plan does not provide benefits for anyone except you, or you and your spouse, or one or more partners and their spouses.
- The plan does not cover a business that is a member of:
a. An affiliated service group,
b. A controlled group of corporations, or
c. A group of businesses under common control.
- The plan does not cover individuals of a business that uses leased employees. For an explanation of the technical terms above, see Definitions on page 3.
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| If you do not meet all five of the conditions listed above, file Form 5500 instead of Form 5500-EZ. If you meet all five of the conditions, read Who May Not Have To File. |
|
| You do not have to file Form 5500-EZ (or Form 5500) for 2005 if you meet the five conditions above and the plan does not have an Accumulated Funding Deficiency (as defined in section 412(a)(2)) for the plan year, and |
| You have a one-participant plan that had total plan assets of $100,000 or less at the end of every plan year beginning on or after January 1, 1994, or |
| You have two or more one-participant plans that together had total plan assets of $100,000 or less at the end of every plan year beginning on or after January 1, 1994. |
| Example. If plan assets in a plan that otherwise satisfies the requirements for filing the Form 5500-EZ totaled $110,000 at the end of the 2004 plan year, and a distribution occurred in 2005 so that total plan assets were $85,000 at the end of the 2005 plan year, a Form 5500-EZ must be filed for the 2005 plan year and for all following years because plan assets in the prior year exceeded $100,000. |
| Note. All one-participant plans must file a Form 5500-EZ for their final plan year even if the total plan assets have always been less than $100,000. The final plan year is the year in which distribution of all plan assets is completed. Check the "final return" box at the top of Form 5500-EZ if all assets under the plan(s) (including insurance/annuity contracts) have been distributed to the participants and beneficiaries or distributed to another plan. |
|
| One-participant retirement plans that are required to file should complete and file Form 5500-EZ for the first year that it is required to be filed and for every plan year thereafter. |
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| File the 2005 return for plan years that started in 2005. All required forms, schedules, statements, and attachments must be filed by the last day of the 7th calendar month after the end of the plan year that began in 2005 (not to exceed 12 months in length). |
| Note. If the filing due date falls on a Saturday, Sunday, or Federal holiday, the return may be filed on the next day that is not a Saturday, Sunday, or Federal holiday. |
| Private Delivery Service Return to top |
| You can use certain private delivery services designated by the IRS to meet the "timely mailing as timely filing/paying" rule for tax returns and payments. The private delivery services include only the following:
|
- DHL Express (DHL): DHL "Same Day" Service, DHL Next Day 10:30 am, DHL Next Day 12:00 pm, DHL Next Day 3:00 pm, and DHL 2nd Day Service.
- Federal Express (FedEx): FedEx Priority Overnight, FedEx Standard Overnight, FedEx 2Day, FedEx International Priority, and FedEx International First.
- United Parcel Service (UPS): UPS Next Day Air, UPS Next Day Air Saver, UPS 2nd Day Air, UPS 2nd Day Air A.M., UPS Worldwide Express Plus, and UPS Worldwide Express.
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| The private delivery service can tell you how to get written proof of the mailing date. See Where To File for the street address when using a private delivery service.
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| A one-time extension of time to file Form 5500-EZ (up to 2 1/2 months) may be obtained by filing Form 5558, Application for Extension of Time To File Certain Employee Plan Returns, on or before the normal due date (not including any extensions) of the return. You must file Form 5558 with the IRS. |
| Approved copies of the Form 5558 will not be returned to the filer. However, a photocopy of the completed and signed extension request that was filed must be attached to the Form 5500-EZ.
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| File Form 5558 with the Internal Revenue Service Center, Ogden, UT 84201-0027. |
| Exception. One-participant plans are automatically granted an extension of time to file Form 5500-EZ until the extended due date of the Federal income tax return of the employer (and are not required to file Form 5558) if all the following conditions are met: (a) the plan year and the employer's tax year are the same, (b) the employer has been granted an extension of time to file its Federal income tax return to a date later than the normal due date for filing the Form 5500-EZ, and (c) a copy of the application for extension of time to file the Federal income tax return is attached to the Form 5500-EZ. Be sure to check box B at the top of the form. An extension granted by using this exception cannot be extended further by filing a Form 5558 after the normal due date (without extension) of Form 5500-EZ. |
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| For a short plan year, file a return and all applicable schedules by the last day of the 7th month following the end of the short plan year. Modify the heading of the form to show the beginning and ending dates of your short plan year and check box A(4) for a short plan year. If this is also the first or final return, check the appropriate box (box A(1) or A(3)). |
| |
| File the Form 5500-EZ at the address indicated below. |
| By mail: |
| Address for filing on paper |
| EBSA |
| P.O. Box 7042 |
| Lawrence, KS 66044-7042 |
| Address for filing on floppy disc, CD-ROM, or tape |
| EBSA |
| P.O. Box 7041 |
| Lawrence, KS 66044-7041 |
| By private delivery service: |
| Address for filing on paper, floppy disc, CD-ROM, or tape |
| EBSA |
| Attn: EFAST |
| 3833 Greenway Drive |
| Lawrence, KS 66046-1290 |
|
Paper and Electronic Filing Return to top |
| As described in more detail below, the 2005 forms are available in two computer scannable formats: machine print and hand print (the questions are the same). |
| Filers can choose a machine print format that is completed by using EFAST approved computer software that produces computer scannable 2-D bar codes on the bottom of each page. Machine print forms can be filed on paper, magnetic tape, floppy diskette, or CD-ROM by mail (including certain private delivery services) or filed electronically by approved EFAST transmitters (authorized transmitters of forms by modem or file transfer protocol). Filers can also choose a hand print format that can be completed in one of two ways. You may complete the IRS printed paper forms by hand or typewriter. You may also choose to complete the hand print form by using computer software from EFAST approved vendors. |
| Caution! Computer-generated forms CANNOT be printed out blank, or with limited information, and then completed by pen or typewriter. These forms must be completed entering the data by computer. |
| The hand print format uses special printing standards that enables EFAST to scan the hand, typewritten, and computer entries and must be filed by mail (including certain private delivery services). Hand print forms are available from the IRS as discussed in How To Get Forms and Related Publications on page 1. See www.efast.dol.gov for a list of approved software vendors. |
Form 5500-EZ Completed by Pen Return to top
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| Use only the official hand print form. Enter only a single letter or number within each box using blue or black ink. Abbreviate if necessary. Where numbers are required, do not enter dollar signs, commas, or decimal points. See the example of a typewritten positive number below. To indicate a negative number, enter a minus sign " - " in the box to the left of the number. |
| NOT REPRODUCED |
Form 5500-EZ Completed by Typewriter Return to top
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| Use only the official hand print form. Type within the row of boxes and ignore the vertical lines between the boxes. The number of entries should not exceed the number of boxes (e.g., if there are 13 boxes, the numbers or letters entered should not exceed 13). Abbreviate if necessary. Where numbers are required, do not enter dollar signs, commas, or decimal points. See the example of a typewritten positive number below. To indicate a negative number, enter a minus sign " - " in the box to the left of the number. |
| NOT REPRODUCED |
Form 5500-EZ Completed by Using Computer Software Return to top
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| Use only software from an approved software vendor, which may produce either a machine print or hand print form. |
| All forms completed using computer software must be submitted on paper (except for machine print forms submitted electronically, as described below). Paper filings must be printed on only one side of standard 8 1/2 by 11 inch paper and mailed to the address listed under Where To File on page 2. |
| To submit a machine print Form 5500-EZ electronically, use only software from an approved software vendor. An electronic signature and an encryption key must be obtained by filing the Application for EFAST Electronic Signature and Codes for EFAST Transmitters and Software Developers Form EFAST-1. You may, following the software's instructions, either (a) save the completed machine print Form 5500-EZ to a 3.5 inch floppy disc, CD-ROM, 4mm or 8mm DAT, 3480 or 3490 cartridge, or 9-track tape and submit the Form 5500-EZ by mail or private delivery service or (b) submit by modem or FTP. |
| See www.efast.dol.gov for a list of approved software vendors, the Form EFAST-1 and additional information. |
|
| File an amended Form 5500-EZ to correct errors and/or omissions in a previously filed annual return for the 2005 plan year. The amended Form 5500-EZ and any amended schedules must conform to the requirements in this How To File section. |
| TIP If you are filing a corrected return in response to correspondence from EBSA regarding processing of your return, do not check the box for "an amended return" (Part I, box A(2)) on Form 5500-EZ. |
| The procedure for amending the return depends upon the type of form filed as specified below: |
|
| Submit a completed, signed, and dated Form 5500-EZ (be certain to check Box A(2)). Attach any schedules or attachments that are being changed from the prior filing. Do not attach schedules and attachments that are not being changed. Do not attach schedules where only attachments are being amended. |
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| Submit a completed and dated Form 5500-EZ with electronic signature (be certain to check box A(2)). Refile all schedules and attachments, including those that are not being amended. |
| See the DOL website at www.efast.dol.gov for information on electronic filing of amended returns. |
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| The plan administrator or employer (owner) must sign and date Form 5500-EZ. |
|
| The Internal Revenue Code imposes a penalty of $25 a day (up to $15,000) for not filing returns in connection with pension, profit-sharing, etc., plans by the required due date. |
| |
- Actuaries of defined benefit plans subject to the minimum funding standards for this plan year must complete Schedule B (Form 5500), Actuarial Information, and forward the completed schedule to the person responsible for filing the Form 5500-EZ. The completed Schedule B is subject to the record retention provisions of these instructions. See the instructions for Schedule B (Form 5500).
- Schedule P (Form 5500), Annual Return of Fiduciary of Employee Benefit Trust, can be completed by the trustee or custodian. The completed Schedule P should be forwarded to the person responsible for filing the Form 5500-EZ. The completed Schedule P is subject to the record retention provisions of these instructions. See the instructions for Schedule P (Form 5500).
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| Organizations defined in Affiliated Service Group or Controlled Group of Corporations and a Group of Trades or Businesses Under Common Control must file Form 5500 rather than Form 5500-EZ.
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| In general, two or more businesses may be an affiliated service group if: (a) one or more of the businesses (or the shareholders, officers, or highly compensated employees of one or more of the businesses) has an ownership interest in any of the other businesses, and (b) any of the businesses provide services to any of the other businesses (or the businesses are associated to provide services to third parties). If this applies to your business, read the rest of this definition for more details. |
| Section 414(m)(2) defines an affiliated service group as a group consisting of a service organization (referred to below as the "first service organization" (FSO)) and: |
- A service organization (A-ORG) that is a shareholder or partner in the FSO and that regularly performs services for the FSO or is regularly associated with the FSO in performing services for third persons and/or
- Any other organization (B-ORG) if:
a. A significant portion of the business of that organization consists of performing services for the FSO or A-ORG of a type historically performed by employees in the service field of the FSO or A-ORG, and
b. 10% or more of the interest of the B-ORG is held by persons who are officers, highly compensated employees, or owners of the FSO or A-ORG.
|
| An affiliated service group also includes a group consisting of: (a) an organization whose principal business is performing management functions on a regular and continuous basis for another organization (or one organization and other related organizations), and (b) the organization (and related organizations) for which such functions are performed. See section 414(m)(5). |
Controlled Group of Corporations and a Group of Trades or Businesses under Common Control Return to top
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| These are corporations or unincorporated businesses in which there is common ownership by one or more individuals or persons. See sections 414(b) and 414(c). |
|
| Under section 414(n), a leased employee provides employee services for you that are performed under your primary direction and control, the individual provides services on a substantially full-time basis for at least a year, and the services are provided pursuant to an agreement between you and a leasing organization. |
|
| Generally, a disqualified person in the case of a sole proprietorship or partnership includes you, your partners, your relatives and your partner's relatives, and other businesses in which you, your partners, or the partnership have an interest. In the case of a corporation, another corporation in which your corporation has an interest may be a disqualified person. |
| Specifically, the term "disqualified person" means: |
- Any fiduciary (including, but not limited to, any administrator, officer, trustee, or custodian), or counsel;
- A person providing services to the plan;
- An employer any of whose employees are covered by the plan;
- An employee organization any of whose members are covered by the plan;
- An owner, direct or indirect, of 50% or more of: (a) the combined voting power of all classes of stock entitled to vote or the total value of shares of all classes of stock of a corporation,
(b) the capital interest or the profits interest of a partnership, or
(c) the beneficial interest of a trust or unincorporated enterprise, which is an employer or an employee organization described in paragraph 3 or 4;
- A relative of any individual, described in paragraph 1, 2, 3, or 5;
- A corporation, partnership, or trust or estate of which (or in which) 50% or more of: (a) the combined voting power of all classes of stock entitled to vote or the total value of shares of all classes of stock of such corporation, (b) the capital interest or profits interest of such partnership, or (c) the beneficial interest of such trust or estate is owned directly or indirectly, or held by persons described in paragraph 1, 2, 3, 4, or 5;
- An officer, director (or an individual having power or responsibilities similar to those of officers or directors), or a 10% or more shareholder, directly or indirectly, of a person described in paragraph 3, 4, 5, or 7; or
- A 10% or more (directly or indirectly in capital or profits) partner or joint venturer of a person described in paragraph 3, 4, 5, or 7.
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Specific Instructions
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Information at the Top of the Form Return to top |
| Check box A(1) if this is the first filing for this plan. Do not check this box if you have ever filed for this plan, even if it was a different form (e.g., Form 5500). |
| Check box A(2) if you have already filed for the 2005 plan year and are now filing an amended return to correct errors and/or omissions on the previously filed return. |
| Check box A(3) if all assets under the plan(s) (including insurance/annuity contracts) have been distributed to the participants and beneficiaries or distributed to another plan. The final plan year is the year in which distribution of all plan assets is completed. |
| Check box A(4) if this form is filed for a period of less than 12 months. Show the dates at the top of the form. |
| Line 1a. Top Enter the formal name of the plan or sufficient information to identify the plan. |
| Line 1b. Top Enter the three-digit number the employer assigned to the plan. Plans should be numbered consecutively starting with 001. |
| Once a plan number is used for a plan, it must be used as the plan number for all future filings of returns for the plan, and this number may not be used for any other plan even after the plan is terminated. |
| Line 1c. Top Enter the date the plan first became effective. |
| Line 2a. Top Each row of boxes on the hand print forms is designed to contain specific information regarding the employer. Please limit your response to the information required in each row of boxes as specified below: |
- Enter in the first two rows of boxes labeled 1) the name of the employer.
- Enter in row 2) any "in care of (C/O)" name.
- Enter in row 3) the street address. A post office box number may be entered if the Post Office does not deliver mail to the employer's street address.
- Enter in row 4) the name of the city.
- Enter in row 5) the two character abbreviation of the U.S. state or possession and zip code.
- Enter in row 6) the foreign routing code, if applicable. Leave row 5), U.S. state and zip code, blank if entering information in rows 6) and 7).
- Enter in row 7) the foreign country, if applicable.
- Enter in row 8) the "doing business as (D/B/A)" or trade name of the employer if different from the name entered in 1).
- Enter in the rows of boxes labeled 9) any second address. Use only a street address, not a P.O. box, here. A P.O. box may be entered only in row 3).
|
| Line 2b. Top Enter the employer's nine-digit employer identification number (EIN). For example, 00-1234567. Do not enter your Social Security Number. |
| Employers who do not have an EIN should apply for one on Form SS-4, Application for Employer Identification Number, as soon as possible. You can obtain Form SS-4 by calling 1-800-TAX-FORM (1-800-829-3676) or at the IRS website at www.irs.gov. The EBSA does not issue EINs. |
| Note. Although EINs for funds (trusts or custodial accounts) associated with plans are generally not required to be furnished on the Form 5500, 5500-EZ or schedules (except on Schedule P (Form 5500)), the IRS will issue EINs for such funds for other reporting purposes. EINs may be obtained by filing Form SS-4 as explained above. |
| Line 2d. Top Enter the six-digit business code that best describes the nature of the plan sponsor's business from the list of business codes on pages 7, 8, and 9. |
| Line 3a. Top Each row of boxes on the hand print forms is designed to contain specific information regarding the plan administrator. Please limit your response to the information required in each row of boxes as specified below: |
- Enter in the first two rows of boxes labeled 1) the name of the plan administrator unless the administrator is the employer identified in line 2. If this is the case, enter the word "same" on line 3a and leave the remainder of line 3a, and all of lines 3b and 3c blank.
- Enter in row 2) any "in care of (C/O)" name.
- Enter in row 3) the street address. A post office box number may be entered if the Post Office does not deliver mail to the administrator's street address.
- Enter in row 4) the name of the city.
- Enter in row 5) the two character abbreviation of the U.S. state or possession and zip code.
- Enter in rows 6) and 7) the foreign routing code and foreign country, if applicable. Leave row 5), U.S. state and zip code, blank if entering information in rows 6) and 7).
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| Line 3b. Top Enter the plan administrator's nine-digit EIN. A plan administrator must have an EIN for Form 5500-EZ reporting purposes. If the plan administrator does not have an EIN, apply for one as explained in the instructions for line 2b. |
| Line 4. Top If the employer's name and/or EIN have changed since the last return was filed for this plan, enter the employer's name, EIN, and the plan number as it appeared on the last return filed for this plan. |
| Line 5. Top (Optional) You may use this line to designate the person or entity that is principally responsible for the preparation of the annual return. |
| Line 5a. Top Each row of boxes on the hand print forms is designed to contain specific information regarding the preparer. Please limit your response to the information required in each row of boxes as specified below: |
- If the person who prepared the annual return is not the employer named in line 2a or the plan administrator named in line 3a, you may name the person in the first two rows of boxes labeled 1).
- Enter in row 2) the street address. If the Post Office does not deliver mail to the street address and the preparer has a P.O. box, enter the box number.
- Enter in row 3) the name of the city.
- Enter in row 4) the two character abbreviation of the U.S. state or possession and zip code.
- Enter in rows 5) and 6) the foreign routing code and foreign country, if applicable. Leave row 4), U.S. state and zip code, blank if entering information in rows 5) and 6).
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| Line 6. Top Check one box on this line. Profit-sharing, employee stock ownership (ESOP), stock bonus, and money purchase pension plans are types of defined contribution plans. A "defined contribution plan" is a plan that provides for an individual account for each participant and for benefits based solely on the amount in such account. If a plan is not a defined contribution plan, it is a defined benefit plan. |
| Line 6a. Top Check this box if the plan is a defined benefit plan other than an insurance contract plan described in section 412(i) (see line 6b). Any defined benefit pension plan subject to the minimum funding standards must complete and attach Schedule B (Form 5500) to this form. All defined benefit pension plans are subject to the minimum funding standards, except certain insurance contract plans described in section 412(i), church plans, governmental plans, and certain other plans described in section 412(h). |
| Line 6b. Top Check this box if the plan is an insurance contract plan described in section 412(i). For a defined benefit pension plan, check either box 6a or box 6b. |
| Line 6c. Top If this is a defined contribution plan for which a waived funding deficiency is being amortized in the current plan year, attach Schedule B (Form 5500) to this form. Complete only lines 3, 8a, 9, and 10 of Schedule B. An enrolled actuary does not have to sign the Schedule B under these circumstances. |
| Line 7a. Top If this plan is a master/prototype plan, enter the latest opinion letter number issued for the master/prototype plan. If this plan is a regional prototype plan, enter the latest notification letter number issued for the regional prototype plan. Leave line 7a blank if this plan is not a master/prototype plan or a regional prototype plan. |
| Line 7b. Top Check box (1) if you, or you and your spouse together, own 100% of the business which maintains the plan, and the business is unincorporated. Check box (2) if you are a partner in the partnership which maintains the plan. Check box (3) if you, or you and your spouse jointly, own 100% of the shares of the corporation which maintains the plan. |
| Line 8b. Top File a separate Form 5500-EZ for each plan if you have two or more one-participant plans with combined total plan assets that exceeded $100,000 at the end of any plan year beginning on or after January 1, 1994. |
| Line 9. Top In general, distributions received by participants from any qualified plan prior to attainment of age 59 1/2, death, or disability will be subject to a 10% tax on the amount of the distributions (in addition to the income tax owed on the amount distributed). In addition, individuals generally must begin to receive distributions from qualified plans by April 1 of the calendar year following the calendar year in which they reach age 70 1/2. |
| For more details on early distributions and excess accumulations in qualified retirement plans, see Pub. 560, Retirement Plans for Small Business, and Pub. 590, Individual Retirement Arrangements (IRAs). In addition, Form 5329, Additional Taxes on Qualified Plans (Including IRAs) and Other Tax-Favored Accounts, contains detailed information on how to report any excise tax or additional income tax in connection with your plan. These publications and the form can be downloaded at the IRS website (www.irs.gov). |
| Line 10. Top Do not include transfers received or rollovers received from other plans on lines 10b and 10c. Those should be included on line 11a. |
| Line 10b. Top Enter the total cash contributions received by the plan during the year and the contributions owed to the plan at the end of the plan year including contributions for administrative expenses. |
| Line 10d. Top Enter the total plan distributions made to participants or beneficiaries (including those distributions that are rolled over, whether or not in a direct transfer under section 401(a)(31)). If distributions include securities or other property, include the current value of the securities or other property at the date these assets were distributed. For distributions of insurance or annuity contracts to participants, enter the cash value of the contract when distributed. |
| Also report on line 10d a participant loan that is included in line 11a, column (a) (total plan assets - beginning of year) and that has been deemed distributed during the plan year or any prior year under the provisions of section 72(p) and Treasury Regulations section 1.72(p)-1 provided both of the following circumstances apply: |
- Under the plan, the participant loan is treated as a directed investment solely of the participant's individual account; and
- As of the end of the plan year, the participant is not continuing repayment under the loan.
|
| If either of these circumstances does not apply, a deemed distribution of a participant loan should not be reported on line 10d. Instead, the current value of the participant loan (including interest accruing thereon after the deemed distribution) should be included on line 11a, column (b) (plan assets - end of year) and on line 12e (participant loans), without regard to the occurrence of a deemed distribution. |
| Note. Although certain participant loans that are deemed distributions are to be reported on line 10d and are not to be reported as an asset thereafter, they are still considered outstanding loans and are not treated as actual distributions for certain purposes. See Q&As 12 and 19 of Regulations section 1.72(p)-1. |
| Line 10e. Top Enter the total plan distributions made during the year attributable to employee contributions or other basis under the plan. |
| Line 10f. Top Enter the amount of assets transferred (under section 414(l)) from this plan to another plan, if any. Do not include rollovers or direct transfers under section 401(a)(31) included on line 10d. |
| Line 10g. Top Include rollovers, direct transfers under section 401(a)(31), transfers under section 414(l), and net income received by the plan for the year. Do not include unrealized gains or losses. |
| Line 11a. Top "Total plan assets" includes rollovers and transfers received from other plans, and unrealized gains and losses such as appreciation/depreciation in assets. |
| Note. Do not include in column (b) a participant loan that has been deemed distributed if the loan has been reported on line 10d in accordance with the instructions for line 10d. |
| Line 11b. Top Do not include the value of future distributions that will be made to participants. |
| Line 12a. Top Enter the value of the plan's participation in a partnership or joint venture. |
| Line 12b. Top The term "employer real property" means real property (and related personal property) that is leased to an employer of employees covered by the plan, or to an affiliate of such employer. For purposes of determining the time at which a plan acquires employer real property for purposes of this line, such property shall be deemed to be acquired by the plan on the date on which the plan acquires the property or on the date on which the lease to the employer (or affiliate) is entered into, Line 14c. Your plan meets the minimum coverage whichever is later. |
| Line 12d. Top An employer security is any security issued by an employer (including affiliates) of employees covered by the plan. These may include common stocks, preferred stocks, bonds, zero coupon bonds, debentures, convertible debentures, notes and commercial paper. |
| Line 12e. Top Enter on this line all loans to participants including residential mortgage loans that are subject to section 72(p). Include the sum of the value of the unpaid principal balances, plus accrued but unpaid interest, if any, for participant loans made under an individual account plan with investment experience segregated for each account made in accordance with 29 CFR 2550.408b-1 and which are secured solely by a portion of the participant's vested accrued benefit. When applicable, combine this amount with the current value of any other participant loans. |
| Note. Do not include on line 12e a participant loan that has been deemed distributed if the loan has been reported on line 10d in accordance with the instructions for line 10d. |
| After a participant loan that has been deemed distributed is reported on line 10d, it is no longer to be reported as an asset unless the participant resumes repayment under the loan in a later year. However, such a loan (including interest accruing thereon after the deemed distribution) that has not been repaid is still considered outstanding for purposes of applying section 72(p)(2)(A) to determine the maximum amount of subsequent loans. The loan is also considered outstanding for other purposes, such as the qualification requirements of section 401(a), including, for example, the determination of top-heavy status under section 416. See Q&As 12 and 19 of Regulations section 1.72(p)-1. |
| Line 12f. Top Enter all loans made by the plan except participant loans reported on line 12e. These include loans for construction, securities loans, mortgage loans (either by making or participating in the loans directly or by purchasing loans originated by a third party), and other miscellaneous loans. Include on this line residential mortgage loans that are not subject to section 72(p). |
| Line 12g. Top Include all property that has concrete existence and is capable of being processed, such as goods, wares, merchandise, furniture, machines, equipment, animals, automobiles, etc. This includes collectibles, such as works of art, rugs, antiques, metals, gems, stamps, coins, alcoholic beverages, musical instruments, and historical objects (documents, clothes, etc.). Do not include the value of a plan's interest in property reported on lines 12a through 12f, or intangible property, such as patents, copyrights, goodwill, franchises, notes, mortgages, stocks, claims, interests, or other property that embodies intellectual or legal rights. |
| Line 13. Top Section 4975 prohibits certain transactions between a plan and any disqualified person and imposes an excise tax on each prohibited transaction. |
| The section 4975 tax is paid with the filing of Form 5330, Return of Excise Taxes Related to Employee Benefit Plans. References to disqualified person transactions refer to all such transactions, not only those that are prohibited. |
| See Definitions on page 3 for the meaning of "disqualified person." |
| Line 14b. Top Count your spouse and your partners' spouses only if they work in the business and benefit under the plan. |
| Line 14c. Top Your plan meets the minimum coverage requirements of section 410(b), for purposes of Form 5500-EZ, if the employees of your business (other than those benefiting under the plan) are: |
- Covered by a collective-bargaining agreement, under which retirement benefits were subject to good-faith bargaining,
- Nonresident aliens who receive no earned income from you that constitutes income from sources within the United States, or
- Not eligible because they do not meet the plan's minimum age or years-of-service requirements.
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| Note. You cannot use Form 5500-EZ if you have employees covered by another plan and this one-participant plan relies on that plan to meet the minimum coverage requirements. Use Form 5500 instead. |
| Line 15b. Top A qualified joint and survivor annuity is an immediate annuity for the life of the participant, with a survivor annuity for the life of the spouse that is not less than 50% of, and is not greater than 100% of, the amount of the annuity that is payable during the joint lives of the participant and the spouse. The qualified joint and survivor annuity may be provided either by the purchase of an annuity contract from an insurance company or directly from the plan's trust. See section 417(b). |