401(k) Plan with no activity do to sale. Audit?

[Guest erisaauditor]

Hi,

Company A purchased company H. Both have 401(k) plans. All of the employees of Company H joined Company A's plan on the first day of 2008. All of the Company H participant contributions were made during 2008 to their new individual 401(k) accounts in the Comapny A plan.

The assets of the Company H plan were not transfered to Company A during 2008. Thus, each Company H participant received two plan statements.

Is an audit still required for Company H's 401(k) plan? The only transactions are loan payments and investment earnings.

Thanks,

TW

[PensionPro]

Unless the plan meets an exception described in the instructions, Schedule H filing is required. The lack of transactions would not be a determining factor.