Form 5500

[DTH]

A plan's termination date is same as the last day of the plan year, 12/31/02. If the plan liquidates participant accounts and sends checks on 12/31/02, have the assets been distributed and the last Form 5500 will be for the 2002 plan year? OR does the plan have "wasting trust" assets and Form 5500s will continue to be filed until the assets in the trust completely liquidated (i.e., until the checks are cashed)? Thanks!

[chris]

Not sure, but wouldn't the plan be able to stop payment on the checks post 12/31? Also, what if one of the checks doesn't get cashed or if a participant cannot be found? Just off the cuff if you know all participants are there and all checks will get cashed immediately upon receipt then file the 5500 for the pye 12/31/02 as the final 5500. If the plan received a bank statement for january 03 showing assets still there, then you'll need to file a 5500 for 03. ??? I'm assuming distribution of the assets was not contingent upon receiving a favorable determination letter upon termination..?

[Guest b2kates]

Seems to me that it depends if the plan is on the accrual or cash basis. If accrual, distributed; if cash, maybe not.