Interesting situation - frozen plan?

So, employer resolution (timely made) clearly stated that the money purchase plan was being frozen. The amendment itself (timely made) did not specifically state that the plan was frozen, but it reduced the formula to zero. 204(h) notice/SMM (timely given) specified that the plan was frozen. Question - although no one could accrue a benefit after the freeze date, do new employees become eligible, even though they will be eligible for a zero contribution? No coverage or nondiscrimination issues. Would you count these people as "eligible participants" on the 5500 form line 6a 1 and 2?? Plan is large enough that an audit is required whether they are counted as participants or not.

They would be participants unless the amendment also froze eligibility to new participants. But unless something odd happened like they got a reallocation of forfeitures they would have a $0.00 balance and as such would not count towards the 100 under the new 5500 audit guidelines.

Thanks Lou. Yeah, I know they wouldn't count towards the 100 for audit purposes, but since eligibility not frozen, then they should be counted on 6a and b. Thanks for the confirmation on eligibility.

Non-lawyer opinion:  Likely, any answer to the original question that is posted here will be inadequate and/or a guess.  The plan sponsor needs its own advice from its own ERISA counsel, who will (presumably) inspect the relevant documents and interview the relevant persons.