schedule r form 5500

[Guest ehayes]

i have a money purchase plan which was frozen in 2000 and the

plan assets were transferred to the company's profit sharing plan

in the same year. i filed form 5500 schedule r to report the distribution from the MPP but did not complete the minimum funding section since the plan was frozen. i received a notice from

the dol requesting minimum funding information. did i complete

the form correctly?

[maverick]

I have a plan in a similar situation, so I was just thinking about this myself. According to the 2000 5500 Preparer's Manual (Janice Wegesin, Joan Gucciardi, Melanie Aska-Knox), a Schedule R does not have to be completed for a frozen mpp (if no distributions were made during the plan year). Why? Because the plan is no longer subject to code section 412 minimum funding standards. I know Joan and if it's in her book, I believe what she says. However, there may be a DOL edit kicking out R's for mpp's that do not have the minimum funding area completed. How about just entering $0 for items 6a and 6b? Maverick

[Earl]

I entered "0"s for the funding area (Plan amended to 0% for a variety of reasons) and got rejected.

funny thing.... It seems to want blanks, not "0"s, on the Schedule but on the reject letter i guess i have to put "0"s, not blanks.

Directions say "if not subject to 412" skip section. Seems to me a 0% formula is not technically exempt from 412, just has a $0 required contribution.

whatever... guess we just have to learn how to play the game.