Participant Count - Retired or Separated Participant

[MarZDoates]

For the participant count on the 5500-SF lines 5a-5c, the instructions on page 11 say to include “retired or separated participants entitled to future benefits. This does not include any individual to whom an insurance company has made an irrevocable commitment to pay all the benefits to which the individual is entitled under the plan”.

Would this mean a 403(b) account? Or would this apply when a defined contribution plan has purchased an annuity for a participant as a distribution option?

Thank you.

[ETA Consulting LLC]

It doesn't mean a 403(b). It's a settlement annuity, where the funds are no longer plan assets. "Settlement Annuity" is merely a term that I use, but the point is that the funds leave the plan to pay an insurance company for a contract to guarantee your benefit under the plan.

Good Luck!