FORM 5500-EZ... Number of Participants

Forum|Forum|1 year ago
July 2, 2025
1 reply
8 views

Lines 5a(1) - 5b(2).... Not sure if I report "2" or "0" on each line.

Have a One Participant Plan (owner/administrator and his spouse). No one else ever worked with the couple. Both are retired, the business is no longer active, and both the husband and wife have been receiving their RMDs for the past five years. There are no more new contributions.

Aware of the $250,000 minimum requirement for reporting, so don't even bring that into this discussion.

Do I report "0" or "2" Participants on Lines 5a(1) - 5b(2)?

ProSeries Professional

sjrcpa

Level 15

No need to ask twice.

https://accountants.intuit.com/community/proseries-tax-discussions/discussion/form-5500-ez/00/331646

How is "participant" defined in the instructions?

The more I know the more I don’t know.

F

fredcampo1Author

Level 3

Yes, sorry for the double post. Initially, I couldn't see my original post, so I thought I inadvertently canceled it. My bad...

Definition of "participant" on page 5 of Form 5500-EZ instructions is confusing to me. It list five categories for inclusion as "participant".

Category No. (1) states that active "participants are currently in employment covered by the plan". Because husband and wife are not "currently in employment" ... they are retired and receiving benefits...I interpreted this as them not being "active participants".

However, category No. (2) inclusion is for "Retired or separated participants receiving benefits under the plan".

The other three listed "inclusion categories" are definite "no"s.

So, I'm not sure if the the retired husband and wife who are no longer actively employed, but are receiving 401(K) benefits from the Plan, are "participants".

Just want a simple yes or no answer. Please??

Jim-from-Ohio

Intuit Community Champion

Yes

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