Combined year-end and final 5500 filing

[KIP KRAUS]

We canceled a DC plan on 06/30/99, which had a plan year of 8/1 thru 7/31. We are just now filing the 5500 for the plan year end 7/31/00. Plan assets were distributed by 7/31/00. Can we file the normal plan year-end 5500 and final 5500 as a combined filing or do we have to file the normal year-end plan and then do a final filing? I can’t see doing it twice and I sure don’t want to pay to have final audit done separately

[mwyatt]

Not sure of your question. I assume you have already filed the 1998 Form 5500 for plan year August 1, 1998 to July 31, 1999. You stated that plan was terminated on June 30, 1999 and that all assets have been distributed by end of next plan year, July 31, 2000. Therefore, you have one last filing to do covering plan year August 1, 1999 to July 31, 2000 (or date of last distribution if earlier). This filing would indicate that filing is last filing (no participants as of end of year and zero assets). Therefore, only one filing remaining. Or did you mean to say that some assets were distributed after July 31, 2000?

[KIP KRAUS]

mwyatt:

Thanks. No there were no assets or participants at 7/31/00. I plan to file one 5500 for the final plan year an plan year ended 7/31/00. Thanks.

[RCK]

These simple questions have an amazing tendency to get complicated.

I'm puzzled by your comment that you "canceled" the plan. Do you mean that you amended the plan terminating it, with proper notice to participants, etc. And may or may not have filed with the IRS for a determination letter? And there being no other 401(k) plans in the controlled group, you were able to distribute assets? If "yes" to both of those, then I agree with mwyatt.

If not . . . . .

[KIP KRAUS]

Rick:

We did every thing you mentioned. I feel pretty sure we are on the right track at this point.