412(e)(3) Plan 5500 filing

[Jakyasar]

Hi

I have not worked on these plans well over 10 years.

Looking at a 5500-EZ that has been filed with no assets for many years. I was told that, technically these plans are not required to reflect assets, at least on 5500-EZ i.e. ok to file them blank.

I checked the 2023 EZ instructions and unless I missed it, did not find anything backing this up.

One set of instructions I found stated the do not need to file EZ unless assets are over 250k.

Am I missing anything on this?

Thanks

[CuseFan]

I don't think so, looking at the form and instructions, I don't you need to file until the final filing.

[Jakyasar]

Assuming assets exceed 250k, you need file though, did you see something else?

[ErnieG]

Just curious usually those Fully Insured Plans reach the $250,000 fairly quickly.  You mentioned "no assets for many years", I would question that as those Plans, among others, have requirements that the Plan contracts must provide for level annual premium payments to be paid extending not later than the retirement age for each individual participating in the plan, and commencing with the date the individual became a participant in the plan (or, in the case of an increase in benefits, commencing at the time such increase becomes effective), and the benefits provided by the plan are equal to the benefits provided under each contract at normal retirement age under the plan and are guaranteed by an insurance carrier (licensed under the laws of a state to do business with the plan) to the extent premiums have been paid.  This may not be a Plan under 412(e)(3).

[Jakyasar]

Ok, let me rephrase this as may not have been clear (sorry, a little less brain activity at this time of year).

The 5500-EZ has been filed with all zeros even though the assets (annuities plus cv's exceed 250k for the past many years).

I was told that, for 412e3 plans, the 5500EZ is not required to provide assets, jt needs to be filed. I could not find anything to back this up.

Hope all I was clearer this time.

 

[ErnieG]

Thank you, my misread.  We are not a TPA but I have never seen a Fully Insured Form 5500 with zeros and I cannot locate any cite to indicate that it is not requiremed to fully complete the Form 5500.  There are certain Schedules are not required though.

[Juan Kelly]

Why isn't Schedule (Form 5500) required to be filed?

[Jakyasar]

412e3 plans (small plans), assuming done properly and have no separate top heavy funding issues and also no investments other than annuities and insurance, are not required to provide schedule sb. PBGC is a separate issue.