Jump to content

0 participant count for 5500

Recommended Posts

We have an ERISA 403(b) plan (had employer contributions) that is in the process of terminating. We hope to have it completed by mid-2010. The sole vendor is co-operating with us to get this terminated. There have been no employee or employer contributions for several years. There are around 130 participants. According to Field Assistance Bulletin 2009-02 transitional relief - none of the contracts need to be counted because they meet the requirements below. They are also not counted in the 5500 count. So am I preparing a 5500 with 0 participants and 0 assets?

Any and all thoughts would be appreciated.

"Specifically, the administrator of a 403(b) plan does not need to treat annuity contracts and custodial accounts as part of the employer’s Title I plan or as plan assets for purposes of ERISA’s annual reporting requirements provided that:

the contract or account was issued to a current or former employee before January 1, 2009;

the employer ceased to have any obligation to make contributions (including employee salary reduction contributions), and in fact ceased making contributions to the contract or account before January 1, 2009;

all of the rights and benefits under the contract or account are legally enforceable against the insurer or custodian by the individual owner of the contract or account without any involvement by the employer;(5) and

the individual owner of the contract is fully vested in the contract or account.

Moreover, current or former employees with only contracts or accounts that are excludable from the plan’s Form 5500 or Form 5500-SF under the above transition relief do not need to be counted as participants covered under the plan for Form 5500 annual reporting purposes. "

Link to comment
Share on other sites

Create an account or sign in to comment

You need to be a member in order to leave a comment

Create an account

Sign up for a new account in our community. It's easy!

Register a new account

Sign in

Already have an account? Sign in here.

Sign In Now
  • Create New...