SEP, ERISA, and Roll-Over
A prospect has what appears to be a SEP-IRA, which they have also described as a Keogh with a Money Purchase plan for (4) employees (perhaps they converted the plan). They filed 5500s through 2006, then stopped when plan assets dipped below $250K. When assets climbed back up in 2014 they did not resume filing.
They now want assistance to prepare and file the delinquent 5500s, then terminate the plan and roll the assets into their IRA.
I’m not quite sure where to begin on this – or even whether to do so. Any guidance appreciated.
Permalink Submitted by William Tuttle on Thu, 2022-03-17 19:21
The penalty for failure to file Form 5500 was $25/day up to $15K. The penalty for Form 5500s required to be filed for years after 12/31/19 is $250/day up to $150K.
Permalink Submitted by Tom Belding on Mon, 2022-03-21 15:13
spiritrider – Many thanks for that input!