Plan Sponsor Leaves PEO - Report BOY 5500 Assets How?

[Guest Robin Vatalaro]

FACTS:

XYZ, Inc. sponsors a 401k plan. 12/31/01 and prior, XYZ, Inc. was a member of a PEO and all HR functions were handled by the PEO including the 401k plan.

The PEO filed a 5500 encompassing the 401k plan assets of all "employers" participating in the PEO's 401k plan, XYZ being one of them.

1/1/02 and forward, XYZ no longer uses PEO and XYZ handles all HR functions in-house, including transferring the 401k assets belonging to XYZ employees to a different investment carrier and adopting the prototype plan document offered by the particular investment provider.

QUESTION:

Does the 2002 Form 5500 reflect zero beginning of year (BOY) assets and show a transfer in of the dollars that used to be at the PEO for XYZ employees? Seems a little too simple, just want to make sure I'm not missing something. Thanks for any help.