Large plan vs small plan filing

[Guest susa]

I have a plan that remains in the 80-120 participant count for multiple years. Can they continue to use that "exception" and file the Sch I with no audit? The company's internal auditors think the exception can be used for only one year.

[Blinky the 3-eyed Fish]

The exception is good for as many years as you want to use it.

[Theresa Lynn]

Right. It looks at what the employer filed the previous year, so if it continues to file as a small plan while in the 80-120 employee range, it should be able to continue to do so. Once it falls out of the range or for any other reason files as a large plan, however, it must again qualify for the under 100 employee eligibility requirement.

Theresa Lynn