Form 5500 Code 3I

[Guest DMZ]

There is a code 3I for use on the Form 5500 that is used to indicate "Plan requiring that all or part of employer contributions be invested and held, at least for a limited time period, in employer securities."

When filing a Form 5500 for an ESOP or a stock bonus plan do you use this code? Technically, the "Plan" does not normally require this, but rather gives fiduciary discretion. I can see where some plans may require that some or all of the contributions are required to be invested in er securities, such as in the case of a plan where the matching contribution is always made in er stock. But, does an ESOP or stock bonus plan by definition mean this code should also be used? Does the primarily invested requirement referenced in the document meet this definition of a plan requiring that all or part of employer contributions be invested in er securities?

I am interested in feedback on what others are doing, and when they are using this code on the Form 5500.

Thanks!

[JanetM]

I would use the 3I for the ESOP. Is redundant, I think, because you have already indicated that by the 2O, 2P or 2Q. This code was new in 2003 so there is little on it in the preparers manual.

[Brenda Wren]

I am not using it on ESOP's. In my opinion it is redundant and not what the DOL is looking for with this code. And like you said, it is not a requirement in ESOP's to purchase employer stock.....they just have to be primarily invested in ER stock.

[stephen]

We use it (even though it is redundant).