No assets in plan and no receivables. 5500 required?

[Guest KMP]

A new plan was established effective 1/1/2004, but there was no money in the plan at the end of the year and no receivable contributions. Does this plan require a 5500 for 2004? If so, do we have to attach a Schedule I and show zero assets? I have heard that this triggers a response from the IRS. If not, for 2005 are we o.k. filing a first return with the plan effective date of 1/1/2004?

[Guest b2kates]

I assume that this is a profit sharing plan so that there is no mandatory contribution.

I feel that the zero return is better than filing a 2005 return with an effective date of 2004. Might trigger an inquiry why no return in 2004 and a question of the validity of the plan. How do you establish a trust without an initial contributiion; even a minimal $100.

[WDIK]

How do you establish a trust without an initial contributiion; even a minimal $100.

b2kates:

You expressed the same sentiment in this discussion, but is seems fair to point out that several other members gave justifiable positions as to why it is not necessary.

By the way, I agree with your assessment of the filing situation.

[Earl]

I have handled the situation both ways and never had consequences or communication with regard to either.