5500 instructions

[Tom Poje]

Besides the usual answer "Because its the IRS"

under what conditions does the following instruction apply:

This is for the 5500 count, lines 6 and 7 definition of participant

1. Active participants.....the last line says

(b) former employees who have received a "cash-out" distribution...

now, much less why a former employee would be considered an active employee is beyond me.

item 3 is for 'other retired or seperated employees entitled to future benefits'

a cashed out ee is not entitled to future benefits

so under what condition would someone even try to include someone who was cashed out?

[Belgarath]

Tom, I don't read it that way. The instructions for line 6 and 7 say, This category does NOT (my emphasis) include (a) ..... or(b) former employees who have received a "cash-out" distribution...

So I'd say you don't have to include them.

[JanetM]

I read it to say active does not include those who have incurred break in service and those who received cash out of 100% of balance.

[jquazza]

On the instructions, under active participants, it says:

This category does not include...

A)...B) ...

I think you just missed the does NOT include...

which gets to prove that speed reading and pension matters don't go together well...