Subscribe (Free) to
Daily or Weekly Newsletters
Post a Job

Featured Jobs

Compliance Analyst

(Remote / West Harrison NY)

Pentegra logo

Client Service Manager

United 401(k) Plans, Inc.

United 401(k) Plans, Inc. logo

Retirement Plan Administrator

Nicholas Pension Consultants
(Remote / Corona CA / Rancho Cordova CA)

Nicholas Pension Consultants logo


Central Pension Fund of the IUOE
(Washington DC)

Central Pension Fund of the IUOE logo

Distribution \ Loan Clerk

Retirement, LLC
(Remote / Oklahoma City OK)

Retirement, LLC logo

Executive Compensation Lawyer

Trucker Huss, A Professional Corporation
(Remote / San Francisco CA)

Trucker Huss, A Professional Corporation logo

Quality Assurance Manager

Bates & Company
(Remote / Winter Park FL)

Bates & Company logo

Jr Retirement Plan Administrator/ Administrative Assistant

Hochheiser Deutsch & Co, Inc.
(Melville NY)

Hochheiser Deutsch & Co, Inc. logo

Retirement Plan Relationship Manager

ERISA Services, Inc.

ERISA Services, Inc. logo

401(k) Distribution Manager

Nova 401(k) Associates

Nova 401(k) Associates logo

Retirement Plan Consultant

Carpenter Morse Group

Carpenter Morse Group logo

Retirement Plan Legal Specialist

(Remote / West Harrison NY)

Pentegra logo

Associate General Counsel

Central Pension Fund of the IUOE
(Washington DC)

Central Pension Fund of the IUOE logo

Defined Benefit Calculation Specialist/Actuary

The Angell Pension Group, Inc.
(Remote / East Providence RI)

The Angell Pension Group, Inc. logo

Relationship Manager

Compass Retirement Consulting Group, Inc.
(Remote / NH)

Compass Retirement Consulting Group, Inc. logo

View More Employee Benefits Jobs

Free Newsletters

“BenefitsLink continues to be the most valuable resource we have at the firm.”

-- An attorney subscriber

Mobile App image LinkedIn icon
Twitter icon
Facebook icon

<< Previous news item   |   Next news item >>

Determining Participant Count for Form 5500 Purposes in This Scenario
BenefitsLink Message BoardsLink to more items from this source
June 29, 2021

"Plan had 103 participants at 12/31/2019. Eligibility is 1 year of service, for deferrals enter on 1/1 or 7/1 following meeting eligibility requirements. Profit Sharing is one year and enter on 1/1 preceding meeting eligibility.

At 12/31/2019 there were 103 participants. As of 1/1/2020 there were 14 additional participants eligible for the deferral portion of the plan bringing the total to 117, still under 120 to require an audit... BUT there were 12 additional participants that became eligible for the profit sharing portion on 1/1/2020 as well but not eligible for the deferral part of the plan. (So hired 2nd half of 2019.)

So counting them the total at beginning of year is 129 and would require an audit for 2020. I'm fairly certain those employees all must be counted in the beginning-of-year count, but is there any way not to count them because at 1/1/2020 they were technically not eligible yet and didn't become eligible until they had their 12 months of service for eligibility? For example, if date of hire is 12/01/2019 and had 1 year 12/01/2020, date of participation for Profit Sharing is 1/1/2020."

Please click here to report this link if it is broken (for example, if you see a "404 File Not Found" error message after you click on the link above).
An important word about authorship: BenefitsLink® is providing a hypertext link to the item shown above, but is not the author of the item (unless otherwise specified).
© 2023, Inc.