Small Plan Audit - IRA's

[austin3515]

Am I correct in assuming that plans funded by IRA's would never be subject to an audit requirement and thefore are not affected by the Small Plan audit rules?

[Guest b2kates]

no 5500 filing for IRA, no audit. What kind of plan do you mean?

[austin3515]

SIMPLE IRA's and SEP's

[jaemmons]

The plans you describe are not required to file a 5500, and therefore, are not subject to any audit requirements.

[austin3515]

Then why are they described under limited reporting for the 5500 instructions???

I wish they would right those darn things in English!

Can you clarify? I would REALLY appreciate it!

Thanks!

[jaemmons]

Instructions to 2001 Form 5500:

Section 1: Who Must File

Do Not File A Form 5500 For A Pension Benefit Plan That Is One Of The Following:

(paraphrasing)

3) SIMPLE IRA under Code Section 408(p)

4) A simplified employee pension (SEP) or a salary reduction SEP described in Code Section 408(k)....

[austin3515]

Thank you!

[Theresa Lynn]

I believe that the limited reporting requirements are intended to apply to employer-maintained IRA plans (the old-fashioned employer IRA), other than SIMPLES and SEPs. If the plan is considered an employer plan, it would be subject to ERISA and thus to the Form 5500 filing requirements.

[austin3515]

Thanks!