MBCarey Posted May 17, 2011 Posted May 17, 2011 We have a client who established a profit sharing plan effective in 2010 but never made any contributions to it so there are no assets. Should we still prepare a 5500?
Andy the Actuary Posted May 17, 2011 Posted May 17, 2011 You need legal help. You may have a plan but you may not have a bona fide trust. The material provided and the opinions expressed in this post are for general informational purposes only and should not be used or relied upon as the basis for any action or inaction. You should obtain appropriate tax, legal, or other professional advice.
MBCarey Posted May 18, 2011 Author Posted May 18, 2011 I'm sorry, why would I need legal help. I have a new plan effective 1/1/2010. It is a profit sharing plan with an employer discretionary contribution only, no employee contribution provisions. The company was unable to make a contribution to the plan for 2010 as they had hoped. I realize there is no exception to filing a 5500, but I did not think there were legal issue I needed to be worried about. Help me understand please.
Guest yvonne001 Posted July 7, 2011 Posted July 7, 2011 I'm sorry, why would I need legal help. I have a new plan effective 1/1/2010. It is a profit sharing plan with an employer discretionary contribution only, no employee contribution provisions. The company was unable to make a contribution to the plan for 2010 as they had hoped.I realize there is no exception to filing a 5500, but I did not think there were legal issue I needed to be worried about. Help me understand please. Did you ever find your answer? Just realized we have a plan with the same situation.
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