5500-SF versus 5500 for small plan

[Pammie57]

We took over a plan with only 26 participants. The former TPA filed the Full Form 5500 for 2014 (with only 26 participants) They did complete the schedule A, I and R.

What would be the reasoning for using the 5500 instead of the 5500-SF in this case?. They have never been a large plan. Could I switch to the SF for 2015 without causing an issue with the DOL/IRS?

[Tom Poje]

one small plan I have is an ESOP so they can't file an SF, simply because they required to file an I due to the assets. but sometimes some former TPAs simply file the same form that was filed in prior years while most embraced the SF because of no attachments.

[RatherBeGolfing]

I believe it is also used when you can claim the audit exemption but still don't have 100% of your assets in qualifying plan assets.

You can be exempt from the audit if at least 95% of plan assets are qualifying plan assets (or less if you have the proper bond)

The SF requires 100% of plan assets to be qualifying at all times.

So if you invest in something like a joint venture or partnership, you can still claim audit exemption and file a 5500 with a schedule I, but you couldn't file a 5500-SF.

Edit: Yes, if you are eligible to file the 5500-SF, switch away.