What is the due date of a final return?

[lkpittman]

I'm sure I know this one, but can't quickly find authority and need a quick answer. We've got a client that completed the distribution of all assets on January 31, 1999, but did not let us know until after the close of the plan year (12/31/99 PYE). Actually, they just told us. Even though I've got a 12/31/99 plan year end, don't I really have a short year return with a plan year end as of the date of the final transfer out of assets? In other words, when is/was their return due? Thanks.

[david rigby]

Good question. I think you have it correct, that the plan year ended 1/31/99, so that the due date of the form was 7 months (unless extended) later, or 8/31/99.

One possible caution, verify that 1/31/99 was the final distribution date, not the begininng the distribution process.

[Richard Anderson]

Isn't this one eligible for the automatic extension until Oct 16, 2000. All 1999 5500's due on or before July 31, 2000 have been granted an automatic extension by the DOL.

[Guest RBeck]

I agree with pax - the due date is 7 months after the final distributions are made - check page 4 of the 1999 Form 5500 instructions where it talks about short years. A short year is created upon the complete distribution of the assets of the plan. The return was due 8/31/99 unless extended.

[Richard Anderson]

The PWBA Press Release on 03/22/00 states " the three agencies have agreed that for filers whose 1999 Form 5500 Series would be due on or before July 31, 2000, the deadline for filing will be extended to Oct. 16, 2000, without filers having to file a Form 5558.

Plans that have a 1999 Form 5500 that are due before July 31, 2000 would include those with short plan years. 8/31/99 is certainly before July 31,2000. If this was not the intention, why would they have included "on or before July 31, 2000" in the statement.

[Guest Ed F]

There's been some confusion--and I'm not sure it's been resolved--about when the final 5500 is due. I've read an otherwise excellent outline prepared by an emminent Mercer actuary, who notes--without citation--that the final 5500 is due 8-1/2 months after assets are distributed. I've heard other arguments in favor of 7 months after assets are distributed, and others in favor of 7 months after the close of the plan year (apparently disregarding the short plan year) in which distribution of assets is completed. In any event, it doesn't seem that you can go wrong by filing within 7 months after assets are distributed. At worst you'll be filing early.

[lkpittman]

Thank you all for the input. Ed, assets were distributed in Jan 99 (not 2000), so we're way late if we were to assume a short year. In any event, all we can do is file asap--I'm not going to indicate we have a short year--I think we'll simply file for the period ended 12/31/99. Return doesn't ask for date of final distribution, so I suppose we'll be okay until we get audited! Thanks again.