1999 Department of the Treasury Internal Revenue Service Instructions for Form 5500-EZ Annual Return of One-Participant (Owners and Their Spouses) Retirement Plan Section references are to the Internal Revenue Code. Changes To Note for 1999 l  The Form 5500-EZ has been revised to take advantage of a new computerized system that will process the form (the ERISA Filing Acceptance System or “EFAST”). The new form is printed on special paper with green drop-out ink. Filers should not substitute a reproduction of these machine readable pages. A copy of the hand printed form is available in Package 5500-EZ. l  For the first time you will file your Form 5500-EZ with the U.S. Department of Labor's Pension and Welfare Benefits Administration (PWBA) rather than the Internal Revenue Service (see Where To File on page 2 for the new mailing and private delivery addresses). Telephone Assistance If you have questions and/or need help completing this form, please call 1-877-829-5500. This toll-free telephone service is available Monday through Friday from 8:00am to 9:30pm EST. How To Get Forms and Publications Personal computer You can access the IRS's Internet Web Site 24 hours a day, 7 days a week at www.irs.gov to: l  Download forms, instructions, and publications. l  See answers to frequently asked tax questions. l  Search publications on-line by topic or keyword. l  Send us comments or request help by e-mail. l  Sign up to receive local and national tax news by e-mail. You can also reach us using file transfer protocol at ftp.irs.gov By phone and in person. You can order forms and publications 24 hours a day, 7 days a week, by calling 1-800-TAX-FORM (1-800-829-3676). You can also get most forms and publications at your local IRS office. General Instructions Reminder For 1994 and prior years, one-participant plan(s) that held $100,000 or less in total plan assets at the end of any plan year did not have to file Form 5500-EZ (or any other annual information return) for that plan year. For Forms 5500-EZ filed in 1995 and later years, one-participant plans that held more than $100,000 at the end of any plan year beginning on or after January 1, 1994, must file a Form 5500-EZ for the year the assets exceeded $100,000 and for each year thereafter, even if total plan assets were reduced to $100,000 or less. For 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 1998 plan year, and a distribution occurred in 1999 so that total plan assets were $85,000 at the end of the 1999 plan year, a Form 5500-EZ must be filed for the 1999 plan year and for all following years. Purpose of Form 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. Who May File Form 5500-EZ You may file Form 5500-EZ instead of Form 5500 if you meet ALL of the following conditions: 1. The plan is a one-participant plan. This means that as of the 1st day of the plan year for which this form is filed, 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. 2. 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. 3. The plan does not provide benefits for anyone except you, or you and your spouse, or one or more partners and their spouses. 4. 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. 5. The plan does not cover a business that leases employees.   For an explanation of the technical terms above, see Definitions on page 3. 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. Who May Not Have To File You do not have to file Form 5500-EZ (or Form 5500) for 1999 if you meet the five conditions above, 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. 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 Cat. No. 63264C