5500 vs 5500-SF

[thepensionmaven]

Why would a TPA have the file Form 5500 instead of Form 5500-SF for a small, 8 participant plan, other than to charge a higher fee??

The investments are with a broker.

[Doghouse]

If all the assets are "eligible plan assets" as described in the SF instructions, no reason.

[BG5150]

To go further, see if any of these apply:

If your plan is required to file an annual return/report, you
may file the Form 5500-SF instead of the Form 5500 only
if you meet all of the eligibility conditions listed below.

1. The plan (a) covered fewer than 100 participants at
the beginning of the plan year 2015, or (b) under 29 CFR
2520.103-1(d) was eligible to and filed as a small plan for
plan year 2014 and did not cover more than 120
participants at the beginning of plan year 2015(see
instructions for line 5 on counting the number of
participants);

2. The plan did not hold any employer securities at any
time during the plan year;

3. At all times during the plan year, the plan was 100%
invested in certain secure, easy to value assets that meet
the definition of “eligible plan assets” (see the instructions
for line 6a), such as mutual fund shares, investment
contracts with insurance companies and banks valued at
least annually, publicly traded securities held by a
registered broker dealer, cash and cash equivalents, and
plan loans to participants;

4. The plan is eligible for the waiver of the annual
examination and report of an independent qualified public
accountant (IQPA) under 29 CFR 2520.104-46 (but not by
reason of enhanced bonding), which requirement
includes, among others, giving certain disclosures and
supporting documents to participants and beneficiaries
regarding the plan’s investments (see instructions for line
6b); and

5. The plan is not a multiemployer plan.

6. The plan is not required to file a Form M-1, Report
for Multiple-Employer Welfare Arrangements (MEWAs)
and Certain Entities Claiming Exception (ECEs) during the
plan year.

[Belgarath]

It is at least theoretically possible that the TPA isn't charging any more for the regular 5500 than they would charge for the SF.

[BG5150]

^ true. And sometimes, firms just prepare the same form as the previous year "because that's the way it's always been done."