I have a MP plan that has merged with the PS plan. I am now doing the final 2002 5500 for the MP plan. Question 5a on sch i asks "Has a resolution to terminate the plan been adopted during the plan year or any prior year? If yes, enter the amount of any plan assets that reverted to the employer....."

If you mark NO, because the plan has not terminated--just merged with transfer of assets, Relius Gov't forms gives you an error saying that box 5a should be marked YES if it the final return/report filed......

What are some thoughts on this one.

thanks,

Carson

Last year Janice Wegesin, co-author of the 5500 Preparer's Manual, had some MPP to PSP mergers on her website
( http://www.form5500help.com/index.html ). She recommended that 5a be marked yes so EFAST would not kick out an error message. I just tried to find the discussion; it wasn't there. Anyway, that's what we have been doing, marking 5a "yes".

We have also been marking it yes, even though we were concerned about the 100% vesting issue. Valerie Stevens also addressed this issue in a recent ASPA Webcast. If I remember right, she said she wouldn't go back an amend a plan if it had been marked no, but would probably mark it yes going forward.
mck

Same topic, different question...small plan, all participants terminated, trust zeroed out in 2008, final 5500 is being filed, but employer cannot find that a resolution was ever adopted. Can we file a final with it checked No? Or does the company need to adopt a resolution, and if they do so, can we check yes for the 2008 filing even though the resolution is adopted in 2009?

Maybe it's a simple question but in regards to my previous post here, I was wondering if someone had any thoughts on the necessity of a resolution to terminate a small plan after the fact? Much appreciated.

You absolutely need a resolution and it cannot be retroactive.

Blinky, I have wondered about this for a long time. Would you still say the formality of a written resolution is required for a Plan where the corporation is owned by one person. Or is verbal communication of his decision sufficient?

I always feel silly having the owner sign the board resolution. Does everyone go through the formality?

Do you do anything similar for a sole proprietor?

I am not a lawyer and don't know for sure, but I don't know why it would matter how many participants there are or if it's a sole prop. I prepare it for every plan term.

Thanks for the replies. Sounds like we will request a resolution to terminate' be adopted and meanwhile file a final 5500 with the r'esolution to terminate' checkbox checked No. next question would be then do we later file an amended form with it checked yes.

Would an amended 5500 violate the principle (correctly) stated by Blinky "... it cannot be retroactive"?

I see what you are saying. So instead, we would not check off the 'Final' box in 2008 and, assuming the resolution is adopted in 2009, file the final then with zero participants, zero assets already?