Short Plan year question/audit exception

[Guest Bearlee]

I have a plan that was created in December 2005 but had an effective date of 1/1/05. Unfortunately on 1/1/05, there were 103 employees who were all eligible participants. The company wound up only having 80-90 employees by the end of the year. As of 12/31/05, there were no assets except for an employer contribution receivable. Is there a way to deem this a short plan year for purposes of the audit requirement? I know the 80/120 rule doesn't apply because there wasn't a previous year filing. Any way around the audit? Thanks in advance!

[WDIK]

It appears to me that you are stuck.

[JanetM]

Supper Stuck - as WDIK points out.

Since you deemed the first year to be 01/01 start. Had you drafted the plan efficitive 12/01 start and them amended to calendar year on 01/01/06 you could have pulled it off. But you are late in auditing and filing for 2005 year. Not that there is much to audit. Eligibility and receivable is all you have.

Good luck.