Welfare plan filing

[bzorc]

Have an unfunded insured Welfare Benefit plan. At 12/31/99, there were 97 participants at the beginning of the year and 81 at the end of the year. It's October 10, and the debate rages as to whether we need to file a 5500 by October 15 (plan was extended). I feel that no return is necessary, due to the plan being under 100 participants. My associate has an impression that for welfare plans, once you file as a large plan you always file as a large plan. However, in 1999, we received the 4R filing code, which says that there will be no filing next year, due to the decrease in participants (we did not use this code on the 1999 Form 5500, unfortunately).

My thought is to not file, and if and when the DOL inquires, answer with the decrease under 100 exception. Or, amend the 1999 Form 5500 and include the 4R code.

Any thoughts? Thanks much.