Guest richez Posted May 10, 2006 Posted May 10, 2006 We have a client that made a large profit sharing contribution to a 401(k) plan on 1/3/06 for the 6/30/05 plan year. Deferral contributions did not start until 10/01/05. Can we skip the 6/30/05 plan year filing and file the initial 5500 for a new plan with the plan year ending 6/30/06 since that is when all cash contributions started? Thanks.
WDIK Posted May 10, 2006 Posted May 10, 2006 If there were eligible participants as of June 30, 2005, I think you should have filed by the April 15, 2006 extended due date, even if the assets reported on a cash basis were zero. You might want to look into the delinquent filers program. ...but then again, What Do I Know?
E as in ERISA Posted May 10, 2006 Posted May 10, 2006 No. It's based on number of participants, not assets. So if employees have credited service in that plan year then you file.
Guest richez Posted May 10, 2006 Posted May 10, 2006 Is there still an audit requirement if this is a large plan? What would there be to audit? The plan assets were $0 at year end.
WDIK Posted May 11, 2006 Posted May 11, 2006 http://benefitslink.com/boards/index.php?showtopic=29407 ...but then again, What Do I Know?
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