AFN For EZ-Filer

[emmetttrudy]

If there is a DB Plan that is covered by the PBGC and eligible to file an EZ, are they required to get an AFN? It is not clear since this Plan would not be required to distribute a SAR, and the AFNs are "in lieu of the SAR".

[mphs77]

I am curious as to how a Plan is a PBGC filer and eligible to file a 5500-EZ.

Can you elaborate please?

[Effen]

I agree with mps, it doesn't seem possible to have that scenerio.

[Buffys Redrum]

Maybe not the actual example referenced - but think about: Cement mixing 4-person non-family partnership with ownership of 32% 32% 32% and 4% - Eligible for 5500-EZ filing (all participants are partners), cement mixing not considered professional, and the 4% owner does not directly own more than 10%.

The AFN is required, the SAR is not required. We send the AFN with the Form 5500-EZ, to be distributed BEFORE the 5500-EZ is mailed.

[Calavera]

Non-professional sole proprietor hiring his spouse will be filing 5500-EZ and will be covered by PBGC.

[Effen]

Ok, looks like there are various possibilities.  I think the answer to the OP is "yes". If you are covered by the PBGC, you are subject to the AFN requirements.  I didn't see any exemption for 5500 EZ filiers.

[80 Fed. Reg. 5625]

The annual funding notice requirements apply to any defined benefit plan to which Title IV of ERISA applies (i.e., they are covered by the PBGC).

An owner-only defined benefit plan is not covered by ERISA and so is not subject to the annual funding notice requirement. In addition, a defined benefit plan that is not covered by the PBGC is also not subject to the annual funding notice requirement.