D Syrett

Teddie, if you have no participants - you should contact the PBGC. I think they will tell you that the plan is no longer subject to PBGC coverage. Then you will avoid the PBGC filing all together.

Q 1. To my knowledge, the nondeductible portion is still taxable when distributed. It does not create basis. Q2. You only report the deductible contribution on the 1040, ie. net Sched C - 1/2 SET.

No. You are not required to file a Sched B beyond the plan year of termination - since the plan is not subject to minium funding beyond that year.