5500 Filing Requirement?

[chris]

Employer is a non-profit school which maintains a 403(b) annuity plan through TIAA-CREF. Employer makes a % contribution on behalf of employees in the plan as well as handles employees' salary deferrals as per plan document. CPA has questioned whether the employer needs to continue filing a 5500......? Thanks for your help.

[Archimage]

Since this is an ERISA 403(b), you are required to file a 5500 on a limited reporting basis.

[chris]

I took a look at the Reg. cite located in the Instructions for the 5500 as to those plans not required to file. I believe it was 2510.3-2(f). The Reg. basically states that tax sheltered annuities are not deemed to be "established or maintained by an employer" if ... a number of factors are present. One of those factors is a list of employer actions/involvement which starts out "The sole involvement of the employer,...." The list of "approved" employer actions does not include making contributions on behalf of the participants. The employer not only handles employee deferrals BUT ALSO makes a contribution aprt from the deferrals. For this reason I would take the position that the Reg. factors are not met and that a 5500 is still required. Thanks for the reply.

[maverick]

You file the 5500 only (no schedules). Complete Part I and Part II (lines 1 - 5, and 8). Use feature code 2L (annuity contracts) and/or 2M (mutual funds) on line 8.

[chris]

Turns out employer has two plans -- one which is purely a tax deferred annuity plan and which appears to meet the exception in the Regs. and one which is a defined contribution plan in which the employer makes a 4% contribution on behalf of participants. Any problem in the big picture with filing a 5500 for the def. cont. plan and not filing a 5500 for the TDA plan? Thanks.