Final 5500 for terminated large plan

[Pammie57]

We had a client whose plan had been a large plan for several years, and filed the 5500 and an audit report.  They terminated their plan mid 2021 and rolled all balances into the plan of the company who acquired the former plan sponsor.  The  new TPA is telling me that they are not required to file the 5500 for 2021, but can file the 5500-SF.  I though it was based on participant count at the beginning of the plan year. (which was over 120)  Obviously, they had zero participants at plan year end.  Thanks for any insights.

[david rigby]

Duplicate post.  See here:  

 

[Pammie57]

The plan was officially terminated - not merged.  So the question remains.  Is there an exception in the year of termination/distributions that would allow a large plan to file the 5500-SF if the participant count was still over 100 at BOY?  

[pmacduff]

My understanding is the same as yours that the audit requirement is based upon the BOY count.  I think that the 5500 instructions seem pretty clear about that.  I don't see any mention affecting the BOY count rule in the event of plan termination.  I vote with you Pammie57!

 

[CuseFan]

6 hours ago, Pammie57 said:

Is there an exception in the year of termination/distributions that would allow a large plan to file the 5500-SF

Think about it....if that were the case then EVERY large plan that terminated would be filing an SF for their final year filing. So, terminated plan with 20,000 participants and $1B in assets at BOY, but zero and zero at EOY, sure, go ahead and file an SF and see what happens. Sorry for the sarcasm, but common...I'd be telling client to keep a close watch and that new TPA.

[CuseFan]

22 hours ago, CuseFan said:

keep a close watch and that new TPA

sorry, close watch on