Final 5500

Hi, 

I'm looking for some clarification on final 5500 for Terminating plans. Is the final 5500 based on the Plan Termination date of final asset exist date.  We received a Plan for Termination in 2022 and the Term date was 8/31/2022 and the asset exist date was 12/26/2023, post the asset exist date there was a residual amount that got posted on 01/02/2024 since the plan had assets in 2023 the final 5500 will be for 2023 right? and the residual amount can be adjusted in 2023?

Thank you. 

If your plan had totally liquidated and all benefits paid out on 12/26/2023, then the final 5500 would be for the calendar year 2023, assuming that this is a calendar year plan.  However, since you had residuals posted on 1/2/24, you may have to consider a short year filing for 2024, from 1/1 to the time when the residual was paid to the employees. This is especialy true if your plan was a large plan, subject to audit. We tried, many years ago, to show the residual as attributable to the prior year, but the audit firm was having nothing to do with that, and performed an audit for the period 1/1 to 1/6/XX. Had to file a final 5500 for that 6 day period.

Hope this helps.

If you can show the residuals that are paid out on in 2024 as payables as of 12/31/2023 and a $0 ending balance as of 12/31/2023 you may be able to get a way with a final 5500 for 2023, otherwise you're in the situation bzorc describes above with a short year filing.