Final 5500?

[Guest rachd]

Here's the situation: employer was bought out and according to the info provided to me, the plan was "merged" with the w/the purchasing employers existing plan as of 1/1/04. Even though the assets were not yet transferred, would 2003 (calendar plan year) be their final filing? Or is the plan not terminated until all assets are transferred out?

Thanks in advance for your help.

Rachel

[JanetM]

Back in the days that I did TPA work, we would consider 2003 final year. Financial stmts and 5500 would show payable to zero out plan assets.

[Guest rachd]

Another question: Would the plan be considered terminated? Employees were not given the option to distribute- their money was just rolled into the employer's plan. I'm thinking no but not sure how to answer the question 5a on the Schedule I.

Thanks again,

Rachel

[E as in ERISA]

I don't think that it's clear how to answer it:

http://www.aspa.org/archivepages/conferenc...ast/5500/qa.htm

[Guest galdridge]

This question came up last year at the AICPA Employee Benefit Plan conference. The DOL response was that as long as the plan assets were transferred within 3-4 days then the plan should treat the 5500 for 2003 as final and the assets should be treated as having been transferred as of the last day of the year. If the assets are not transferred until after 4 days, the DOL stated that 2004 should be treated as a short plan year.

Glenn Aldridge, CPA

Audit Manager

Bennett Thrasher PC

Atlanta, GA