5500 with audited report

[pbarrett]

In the past, if you had a plan that started let's say with 95 particpants and then eventually ended up with more than 100 particpants but less than 120, you did not need to have an audited report sent with the return (you could still use the 5500 C/R series). With the new 5500, will that provision still be available?

[bzorc]

If you have a copy of the 1999 instructions to the 5500 series, take a look at page 15, which states:

"If a Form 5500-C/R was filed for the plan for the 1998 plan year and the plan covered fewer than 121 participants as of the beginning of the 1999 plan year, the Schedule I may be completed instead of the Schedule H."

I believe that gets you out of your audit requirement for 1999, if you're under 121 participants as of the beginning of the year.

Hope this helps.