Delayed Spin-Off & Form 5500

[Guest AEA]

In 2004, decision made to spin-off certain participants from a DB plan into a new plan, then terminate the new plan. New plan prepared for adoption effective 1/1/2005 (and frozen as of such date) with short plan year of 1/1 to 6/25 for the first plan year; however, due to a number of reasons, the spin-off did not actually occur until January of 2006, effective 12/31/2005. Assets and liabilities were transferred in January of 2006 based on 12/31/2005 valuations and benefit accruals. Notices of the termination were sent to participants in June of 2006.

I was just asked this morning whether a Form 5500 should have been filed before now, meaning for any time period before the assets and liabilities were transferred in January of 2006. Not being a Form 5500 expert, I came here.

It is clear that there were no assets in the plan for short plan year from 1/1 to 6/25/2006. In addition, the spin-off amount was based on what the participants had accrued in the original plan as of 12/31/2005. However, it appears that a 5500 might be required even if there are no assets. What I can't decide is if I can argue that there weren't even any participants until 12/31/2005 and, even if I could, whether a Form 5500 would still be required because the plan was effective 1/1/2005. Any thoughts?

I think that it is clear that a Form 5500 would be required for the 6/26/2005 to 6/24/2006 plan year, but I don't know what to do with the first short year....