Church Plan

[nancy]

We took over a non-electing church plan. The previous administrator had been been filing 5500s. Now the plan is at a point where they would need an audit and they want to discontinue filing. I can't really file a final return with zero assets and participants as that is not accurate. Does anyone know of a procedure to discontinue filing?

[jpod]

First of all one needs to be certain that it is in fact a church plan (rather than merely the employer or someone else thinks it is a church plan) and that no 410(d) election was EVER made. If you are an ERISA attorney or other specialist and that is your conclusion, I respect that. If you are just repeating what someone told you, then go back to my first sentence.

Assuming it is in fact a non-electing church plan, just stop filing. Someone will have to respond to correspondence from DOL and/or IRS, but if it is a non-electing church plan this will be merely a hassle, not a compliance risk. I don't know of any other way of handling this.

[nancy]

This is a brick and mortar church, so it is definitely a church plan. I am relying on the sponsor's representation to me that they never made an election.

[ETA Consulting LLC]

"IF" they are filing Form 5500s, then that would seem to imply that they have, indeed, elected to be subject to ERISA. That in itself would constitute an election, wouldn't it?

Good Luck!

[david rigby]

That in itself would constitute an election, wouldn't it?

I don't think so. You may wish to review regulation 1.410(d)-1