Hi,

Company A purchased company H. Both have 401(k) plans. All of the employees of Company H joined Company A's plan on the first day of 2008. All of the Company H participant contributions were made during 2008 to their new individual 401(k) accounts in the Comapny A plan.

The assets of the Company H plan were not transfered to Company A during 2008. Thus, each Company H participant received two plan statements.

Is an audit still required for Company H's 401(k) plan? The only transactions are loan payments and investment earnings.

Thanks,

TW

Unless the plan meets an exception described in the instructions, Schedule H filing is required. The lack of transactions would not be a determining factor.