Filing Form 5500 for Frozen Plan

[metsfan026]

Is there anything special to do to file a Form 5500 for a Frozen Cash Balance Plan?  It is fully funded (assets exceed the liabilities)

OR do we just file it with no contribution requirements for the year?

 

[Bri]

Same as any other plan, but code 1I (one-eye, depending on your font)

[metsfan026]

15 minutes ago, Bri said:

Same as any other plan, but code 1I (one-eye, depending on your font)

Thanks!  So, if they opt to un-freeze the plan at some point we simply remove that code on the 5500, right?  I just wanted to make sure

[david rigby]

Is it just me?  Is there something else going on?  Has there been any doubt about the ongoing reporting and disclosure requirements of a frozen plan?

[C. B. Zeller]

44 minutes ago, metsfan026 said:

Is there anything special to do to file a Form 5500 for a Frozen Cash Balance Plan?  It is fully funded (assets exceed the liabilities)

OR do we just file it with no contribution requirements for the year?

Frozen does not necessarily mean no contribution requirement.

Even if the assets exceed the funding target right now, and the target normal cost is zero due to no benefits accruing, you could be subject to a minimum contribution in the future due to changes in interest rates and/or fluctuation in the value of assets.

The plan is still subject to 430, and still required to have a schedule SB, until it is terminated.

[metsfan026]

8 minutes ago, C. B. Zeller said:

Frozen does not necessarily mean no contribution requirement.

Even if the assets exceed the funding target right now, and the target normal cost is zero due to no benefits accruing, you could be subject to a minimum contribution in the future due to changes in interest rates and/or fluctuation in the value of assets.

The plan is still subject to 430, and still required to have a schedule SB, until it is terminated.

Yes, the SB was being done as Frozen and $0 Normal Cost.

I just had never done the form for the Frozen, so wasn't sure what to check off (unlike with a Terminated Plan).  There's a chance the opt to unfreeze it in a year or two, or just close it down (it's not subject PBGC).  That's why I was asking.

[Bri]

yeah, so if they do unfreeze down the road, you'd pull that code.  Otherwise you might sort of visualize it as just an ongoing plan with a 0% formula for everyone - you do everything else like you'd "normally do".