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Full Version: Audit required for terminated plan?
BenefitsLink Message Boards > Employee Benefits in General > Form 5500
katieinny
A plan goes over the limit for the first time in 2001 and does the audit as required. Then the plan terminates in 2002 and all assets are out by 12/31/02. We're doing the final 5500 and hate to force a financially strapped client to pay for an audit for a terminated plan. Is there any relief from this requirement for terminated plans?

If we file the final 5500 without an audit, does the client risk a penalty? If so, how much?
Katherine
More than the cost of an audit: $50,000
katieinny
I guess you're saying that there is no relief from the audit requirement for terminated plans.
pax
It is tempting to respond as:
- No.
- Yes.
- How much ya got?
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