Pension Code 3C

[Guest Boilerburm1]

Is this code only used for Puerto Rican plans? Reading the 5500 Preparer's Manual, this code is reported only when there is no election made under ERISA Section 1022(i)(2), which based on my reading only applies to Puerto Rican pension plans. Is this right?

When would anyone file correctly and use code 3C?

Thanks.

[JanetM]

3C is for any plan not intended to qualify in 401, 403 or 408. We used to have plan that was never amended to comply with ERISA - was a wasting trust. That was a 3C plan.

Not sure about the Puerto Rican Plan.

[WDIK]

In addition to JanetM's comment, your confusion may be coming from one of the cautions in the Form 5500 instructions. This caution refers to the fact that Puerto Rico plans should only use Code 3C when there is no election made under section 1022(i)(2). If an election was made for a Puerto Rico plan then Code 3C does not apply.

This caution does not, however, preclude Code 3C from applying to other types of plans besdies a Puerto Rico plan.

[Guest Boilerburm1]

Thanks for your replies - sounds like I am off-base on the Puerto Rican angle. I guess I am trying to understand when this code would be used. Is the "wasting trust" concept the real purpose for this code?

JanetM - if your plan wasn't an ERISA plan, then why is it filing a 5500?

[JanetM]

5500s are required by some nonqualified plans. Any non qual plan with assets in trust are required to file.