Plan has 139 participants at the BOY in 2008, 126 in 2009, and 118 for 2010, so the plan falls under the audit requirements for those years and the Schedule H filed.

However, we are estimating that the count will be about 90-95 participants as of the BOY for 2011. It is my understanding that if the count falls below 100, the audit is not required, is this correct (some disagreement in our office, some say must be below 80 to get out of audit)?

For the 2011 year which Schedule will need to be filed the H or I? Or is there a choice do to the 80-120... I believe they could file the I because there is no audit required...

Thanks all!

Under 100 on first day, no audit required.

The 80-120 rule is OPTIONAL that allows you to file under the same method as the year before. Nearly every client we have ever had has taken advantage of the 100 - 120 corridor to continute to file as a small plan and nearly every client we have ever had has also dropped the audit when the fell below 100.

Client can file a Form 5500-SF. It does not need to file a Schedule I unless it has to.

Thanks! Yes, file the 5500-SF, I just forgot about that while writing question.

I think if the count goes under 80, you MUST complete a small plan filing, and cannot do the full 5500. If you go under 100, you may file an SF, but don't have to. Under 80 and no Schedule H for you!