First year of plan

[jkharvey]

I think this plan needs to file a 5500, but I'm hoping someone tells me differently. First year plan is effective was 2009. The only contributions for that year were elective deferrals made at the end of 2009 and not deposited until first few days of 2010. The CPA did not file a 5500 for 2009 under the theory that there was no money in the plan, so no need to file. I want to say that there is an asset and that is the deferrals receivable and a 5500 should be filed. Which is it?

[QNPG]

I think this plan needs to file a 5500, but I'm hoping someone tells me differently. First year plan is effective was 2009. The only contributions for that year were elective deferrals made at the end of 2009 and not deposited until first few days of 2010. The CPA did not file a 5500 for 2009 under the theory that there was no money in the plan, so no need to file. I want to say that there is an asset and that is the deferrals receivable and a 5500 should be filed. Which is it?

Take a look at a previous discussion regarding this topic:

http://benefitslink.com/boards/lofiversion...php/t24173.html

Hope this helps.

[Bird]

You could definitely say that there are no assets in the plan if filing on a cash basis.

But could you say that means you don't have to file a return? I'm not so sure about that. The plan had to exist in order for the contributions to be withheld from pay. And the instructions say to file a return for any plan covered by ERISA.

(My answer might be different if it were a PS-only plan and there was no contribution at all for the year the plan was established, but that's only if I needed a bailout.)

[jkharvey]

Bird...I like how you think. I would not hesitate if this were PS only. The fact that deferrals were withheld from pay under terms of this plan in 2010, makes me say they have to file a return. Doesn't that give the plan an asset in and of itself? Now, I also understand the cash vs accrual argument. I think I will call DOL and see what they tell me. Not sure why I didn't think of that in the first place.