terminated plan/continuing employer--how to count participants

[jjaatirs]

We have a client who terminated their plan effective 10/31/2014. As of 12/31/2014, there were some participants who were still active employees of the employer who had not yet cashed out of the plan. Should they be counted as Active or as Separated participants for purposes of lines 6a(2) and 6b of the 5500?

The instructions say that Active Participants are "any individuals who are currently in employment covered by the plan and who are earning or retaining credited service under the plan."

I can see the argument that these people should be counted as Separated since they are not currently in employment "covered by the plan" and they are not earning credited service under the plan. However, I can also see the argument that they should be counted as Active since they are currently employed by the plan sponsor and the are retaining credited service under the plan.

I'm guessing that I'm missing something basic and obvious, but this one confused me today. Thanks in advance for any input.

[Lou S.]

I could see an argument for either but I'd treat them as "active" since they are still employed by the Plan Sponsor at EOY.

[My 2 cents]

My vote is for counting them as active. Surely, standard practice in an ongoing but frozen plan is to count those still employed as actives for 5500 purposes, isn't it?

[jjaatirs]

Thanks, Lou & 2, I was leaning toward active so I'll go with that.

[david rigby]

Pardon my bluntness, but this is silly. In the context of the 5500, the various categories are pretty simple: "active" means "actively employed", and "separated" means "not actively employed". Please don't seek complexity when it's not needed.