Form 5500 filing in year of merger

[Guest Diane DuFresne]

I have a client who, due to a corporate merger that occured during 2001, merged their pension plans, effective 1/1/02.

The question now being asked is "Is a Form 5500 due for 2002?" And if so, is there any way to avoid the associated audit of the plan as the number of paricipants at the beginning of the plan year was more than 100 participants (prior Form 5500 filed as a large plan).

My reply to them thus far is yes, a 2002 Form is required as the Form 5500 instructions indicate that a final return/report should be filed for the plan year that ends when all plan assets were legally transferred to the control of another plan. As the merger of the plans was not effective until 1/1/02, a 2002 Form 5500 is required.

I also cannot locate any support for the non-requirement of an audit for a situation such as this. Any one have any thoughts?

[E as in ERISA]

My understanding is the same as yours -- that an audit and 5500 are required for one day. I understand that the DOL may have become less aggressive about enforcing this, but that doesn't necessarily provide enough comfort to everyone to stop doing them.