Final Schedule SB for Terminated Plan

[emmetttrudy]

One man Plan. Terminated March 2008. Assets were distributed March 2009. Will file a 5500-EZ and prepare Schedule SB for 2008, and a 5500-EZ for 2009. Does a Schedule SB need to be prepared for 2009?

[Andy the Actuary]

One man Plan. Terminated March 2008. Assets were distributed March 2009. Will file a 5500-EZ and prepare Schedule SB for 2008, and a 5500-EZ for 2009. Does a Schedule SB need to be prepared for 2009?

Not required for 2009. Funding standards cease to apply once plan is terminated.

[carrots]

One man Plan. Terminated March 2008. Assets were distributed March 2009. Will file a 5500-EZ and prepare Schedule SB for 2008, and a 5500-EZ for 2009. Does a Schedule SB need to be prepared for 2009?

We have only been providing the Schedule SB through the year in which the plan terminates.

[Andy the Actuary]

Carrots stated it more clearly than I. Thanks.

[Guest pm01]

I've always thought that a plan was not "terminated" until after all assets have been distributed. Does that only apply to a PBGC plan?

[Andy the Actuary]

"Termination" has different connotations depending upon the purpose. And here, we're talking standard termination.

For 430 (which used to affectionately be known as 412), minimum funding ceased once the plan was terminated by amendment.

For PBGC, the premium obligation continues so long as the plan has no undistributed benefits, even though the plan could still have assets (for reversion or expenses not paid).

For 5500, life goes on until the plan has no more assets. How, Schedule SB would not be filed after the plan year of termination.

For distributing plan communications, life would cease once all benefits have been distributed.

For FASB, life would also end when the plan has no more assets.

[JAY21]

Somewhat related question, does anyone have a problem with a terminated plan that paid out during the year still using an EOY valuation date which would then be mostly zeros (0's) on the Schedule SB (assets=fmv=$0, tnc might be $0, depends). I almost feel more comfortable changing to a BOY val but then I'm not sure there is anything wrong with an EOY val/Schedule SB with mostly zero's though the funding target would disappear under this approach since no benefits in the plan as of Val date. Thoughts ?

[WDIK]

Two "thoughts" in this link.

http://benefitslink.com/boards/index.php?showtopic=42112

[Guest pm01]

When completing the 5500 - EZ for this situation (plan terminated in prior year, but assets not yet distributed, so minimum funding no longer applies), is the correct entry for line 10i(1) - No? and skip 10i(2)?

[AndyH]

Somewhat related question, does anyone have a problem with a terminated plan that paid out during the year still using an EOY valuation date which would then be mostly zeros (0's) on the Schedule SB (assets=fmv=$0, tnc might be $0, depends). I almost feel more comfortable changing to a BOY val but then I'm not sure there is anything wrong with an EOY val/Schedule SB with mostly zero's though the funding target would disappear under this approach since no benefits in the plan as of Val date. Thoughts ?

For 2008 or 2009? I don't think you have automatic approval or an approval process after 2008.

[Guest pm01]

2008