Schedule R; file or not to file

[BG5150]

The only "distributions" for my plan are ADP refunds.

Do I need to file the "R"? (Plan is on a standardized prototype, so I'm not answering question 9).

Related: Would I need to file an "R" if all we had were deemed distributions?

[BG5150]

Never mind. I should read the instrux before I post these things.

Shedule R instrux:

''Distribution'' includes only payments of benefits during the

plan year, in cash, in kind, by purchase for the distributee of an

annuity contract from an insurance company, or by distribution

of life insurance contracts. It does not include corrective

distributions of excess deferrals, excess contributions, or

excess aggregate contribution, or the income allocable to any of

these amounts. It also does not include the distribution of

elective deferrals or the return of employee contributions to

correct excess annual additions under Code section 415, or the

gains attributable to these amounts. Finally, it does not include

a loan treated as a distribution under Code section 72(p);

however, it does include a distribution of a plan loan offset

amount as defined in section 1.402©-2, Q&A 9(b).

[BG5150]

There's been some talk in the office about not filing the "R" at all if there are no distributions even if the plan does not satisfy one of the five exceptions for answering the coverage question.

Your thoughts?

[WDIK]

not filing the "R" at all if there are no distributions

The Form 5500 instructions seem to provide such an exception.

[Tom Poje]

which, in some ways gets back to the ridiculousness of reporting the coverage results.

lets see plan either passes or fails coverage.

if it fails, what are you going to do? look the other way? lie and tell the govt it passes?

tell the truth and write a note, oh by the way, we fail coverage - guess we are disqualified, huh?

if it passes, does it really matter if it passes by avg ben % test or ratio % test?

do you also tell the govt if your plan passes ADP test? I don't see a big deal (except force of habit) as to why this particular item is so important to report.

remember when they used to ask 'did you limit compensation to $200,000'. did anyone ever dare to answer no to that question?