How does Quantech count for line 6 on 5500 Counrt Report?

[Guest Marcy Goyette]

How does Quantech come up with the total number of employees on line 6 of the 5500 Count Report? Specifically what status does any employee have to be? And how does it handle vested and nonvested balances of terminated employees? Does it count people who have been paid out their vested balance and the only remainng balance is a forfeiture amount waiting to be released at a later date?

[Sue H]

Line 6 includes employees who:

1) Enter on the plan year beginning date, OR

2) Entered in a prior year AND EITHER

a) Are still active OR

b) Terminated AND EITHER

i) Had a vested balance on PYB OR

ii) Was active and terminated during the current year

(Sorry, I couldn't get it to format the above nicely, it is easier to follow if you indent the a) & b) below 2), and the i) and ii) below the b).)

The determination uses current plan category (not necessarily status), entry date, status date, and vested balance as of PYB. If the only remaining balance is to be forfeit, then their vested balance should be zero & they should be excluded.

Hope that helps.