Question 5 on 5500

[Lori H]

Each year the number of participants at the beginning of the plan year is automatically carried over from Question 6f of the previous years 5500. For example if the 2009 Form 5500 question 6f was answered 214. Then question 5 for the 2010 5500(number of participants at the end of the plan year) will reflect 214 as well. How can this be if an entry date is typically the first day of the plan year? Both Relius and Ft William carry over previous years numbers.

[Tom Poje]

very observant. I think that's just a starting point assumed by the softwares, for all practical purposes a minimum number and I have always increased by the number of employees entering on the first day.

In rare cases I've seen the number drop beacuse the company didn't tell me about employees (Those with no balance) who actually quit the year before. I'm hesitant to change lower a number, but I've never had a problem increasing the number.

[Guest IluvNewComp]

If using Relius, did you run eligibility for January 1 to bring in the new people?

[Earl]

For what its worth, I called the DOL about this because the people who entered on 1/1 put the plan over the 120 threshold.

They told me they count and the plan had an audit requirement.