Open MEP Form 5500 Filing Requirements

[JustMe]

Am I understanding correctly that basically any MEP may file 1 Form 5500 and just provide the attachment regarding the participating employers, the contributions, etc.? Or do Open MEPs need to file separate Form 5500s for their participating employers? Did that change for 2019 or has it always been that way?

[Alonzo Church]

JustMe -- It's not that simple.  You can establish an open MEP that can be filed on a single 5500, but transitioning whatever current arrangement you may have to the single 5500 will require some actions that would be difficult to take retroactively. There's also a question that your current arrangement could be easily shoehorned into the DoL's currently effective guidance. Note also that the PEP Plan rules, which allow for a completely open MEP provided certain requirements are met, do not go into effect until 2021.

[JustMe]

Alonzo Church - thank you! I have 1 new Open MEP as of 2019 and wondering if I could file that one on an individual Form 5500. In addition, I have a potential new plan (effective 2020) that is likely a MEP - finalizing an ASG determination - and was wondering if that one would be able to file 1 Form 5500.  

[Alonzo Church]

Just Me -- If your open MEP covers employers from the same area or employers untied through a single PEO, you might be able to file it that way, but my instinct is to be rally careful about this. I don't know how your 2019 program has been communicated and what the plan documents say.

Your potential 2020 plan sounds like it could qualify as a MEP without too much trouble. My one piece of advice would be to make sure each separate employer physically makes the contributions for its employees.