Closed MEP and audit requirement?

Closed MEP 401(k) plan. 

Can an audit be avoided if the individual entities are each below the participant count threshold? The MEP as a whole appears to be over the audit count threshold. 

I confess my ignorance, I've only had experience with small MEPs, usually former control groups that became not-a-control-group but still worked together. 

I have seen some MEPs do individual 5500s for each single employer, does anyone have any rules or reading I can do on this topic?

Would filing each entity under a separate 5500 alleviate the audit requirement? 

If there are other threads or reading material on this question specifically, please point me in that direction. I do understand the Form 5500 has an updated MEP attachment, which I think I understand fine. My question isn't related to that. 

Thanks everyone! 

justanotheradmin, the audit requirement is determined at the adopting employer level, looking at its participants. If all the MEPs employers satisfy certain conditions, the MEP files a single 5500. But the audit requirement is separate and applies to each adopting employer.

Thanks Luke! 

14 hours ago, Luke Bailey said:

justanotheradmin, the audit requirement is determined at the adopting employer level, looking at its participants. If all the MEPs employers satisfy certain conditions, the MEP files a single 5500. But the audit requirement is separate and applies to each adopting employer.

how would this be reflected on the Form 5500? The closed MEP files a single form 5500. The participant counts as a whole are all above 120. A schedule H would be required, no? And there is no place on the Schedule H to claim the small plan audit waiver. 

Happy to chat about this if you'd like, justanotheradmin.... 

Terry Power

The Platinum 401k, Inc.

tpower@theplatinum401k.com

813.774.3366