When you have missed the due date, you must complete Form 5558 to request an extension. This application is required for all benefit plans under the ERISA (Employment Retirement Income Security Act) of 1974.
A timely filing will ensure you get the extension you need and will help avoid penalties. You will be granted the extension automatically if you file it on or before the 15th day of the third month following the original due date. If the due date falls on a weekend, legal holiday, or other day off, you must file a new Form 5558.
The Internal Revenue Service (IRS) has specific instructions for filing Form 5558. Private delivery services should follow these instructions. If you want to file electronically, you can contact the Internal Revenue Service Center in Ogden, UT.
The IRS requires that the form be completed for each plan. You cannot use the same form to report extra contributions to multiple plans. You should only file one Form 5558 per plan. You cannot submit a list of all plans with the same Social Security number.
Table of contents
- What is a 5558 extension?
- Can you electronically file form 5558?
- Can you electronically file form 5558?
What is a 5558 extension?
You must file Form 5558 no later than two and a half months before your normal deadline. In other words, you must file Form 5558 by July 31, 2020, before the original due date. You can extend this deadline once if you haven’t filed your return by then.
If you do file on time, you can expect to get the extension you need. If you miss the due date, you’ll need to file Form 5558 to extend the due date of your tax returns.
The IRS allows you to request an extension for multiple forms, including the Form 5558. You will have to manually fill out this extension form, but you do not have to sign it. After the extension is approved, you can file your forms on the next non-holiday.
Remember that you must retain your Form 5558 along with your records. So, make sure that you file your form on time, and don’t miss the deadline!
Can you electronically file form 5558?
The IRS Form 5558 must be filed annually by the administrators of the plan. Smaller plans do not have to file an annual report, but those with fewer than 100 participants are exempt from this requirement. Despite the strict deadlines, you must make sure to file your information on time to avoid penalties.
There are overlapping penalties between the DOL and the IRS, so you’ll need to make sure you meet them! In addition to the penalties, there are other considerations that you need to make before filing the Form 5558.
The form 5500-EZ is a short form that is used by one-participant pension plans that are not subject to Internal Revenue Code section 104(a) or the Employee Retirement Income Security Act of 1974 (ERISA). As a result, these pension plans cannot file Forms 990 and SF electronically.
Instead, they must fulfill their reporting and filing requirements manually. The following are some guidelines for filing Form 5500-EZ.
Fill out a form 5500-EZ and update the information on questions 4a-4d. This form requires the employer to enter all the information about the participant, including age, gender, and address.
The information on questions 5a-5c must be updated as well. If your plan includes a brokerage account, it must be listed separately. Depending on your plan’s requirements, it can include these investments. The Solo 401k by Nabers Group is a defined contribution plan and does not have a defined benefit.
Can you electronically file form 5558?
Non-owner employees cannot use the form 5500-EZ. Instead, they must file Form 5500-SF or full Form 5500. While the SF is easier to fill out than Form 5500-EZ, it requires more work than the former. A full Form 5500 will require the attachment of all schedules.
That’s the main difference between the two forms. A late Form 5500 will get the attention of an auditor.
When filling out Form 5500-EZ, make sure you gather all the required information. This includes the type of account and the amount of employer contributions. If your company participates in the IRA or other similar plans, be sure to gather all the necessary information from them.
For example, if you are an employer and your plan has automatic enrollment or payroll deductions, you should aggregate all these accounts and fill in all the necessary details.
The filing deadline for Form 5500 and related schedules can be extended up to nine and a half months. Generally, you must file Form 5558 by the end of the seventh month after the end of the plan year.
The IRS also requires that you attach a copy of the computer generated notice to the Form 5330 if the extension is approved. This step is essential if you miss the original due date and need an extension. You may need to submit additional forms to request an extension.