Participant Count on Form 5500

[msmith]

A large 403(b) Plan with more than 200 participants - but only 50 with account balances is frozen in 2012 (for eligibility and contributions). For the Plan Year beginning 01/01/2013, would the participant count be limited to the participants with account balances because the others are no longer earning or retaining credited service?

[PensionPro]

I believe that your count includes employees who were eligible as of freeze date but not employees who become eligible thereafter.

[ETA Consulting LLC]

I believe that your count includes employees who were eligible as of freeze date but not employees who become eligible thereafter.

This is a very conservative interpretation, but I'd (respectfully) disagree. They are not actively partcipating, nor entitled to any future benefit from the plan (since the balances are zero). Given the fact the plan is frozen, there is no "eligibility to defer in the current year". So, my only count (under these circumstances) would be those with actual balances; since there is no active participation (nor eligible but not deferring) in the plan year.

Good Luck!