A plan that is in the process of terminating is still required to file Form 5500 each year until the termination is complete and all plan assets have been fully distributed.
Who This Applies To
This information applies to plan sponsors and administrators responsible for filing Form 5500 for a retirement plan that is in the process of terminating.
When Can We Stop Filing Form 5500?
You are required to continue filing annually until:
- All plan assets have been distributed, and
- The plan’s asset balance at year-end is $0
Once those conditions are met, you must file a Final Form 5500 for that plan year. This filing officially notifies the IRS and Department of Labor (DOL) that the plan has been terminated and no longer holds any assets.
Verify Your Final Form 5500 Filing
- A final 5500 filing is required even if the plan is no longer active.
- The final Form 5500 must reflect a zero ending balance.
- The final Form 5500 must show zero active participants.
- Be sure that the box marked “Final Return/Report” on the form is checked to indicate the plan’s closure.
Need Help with a Final 5500 Filing?
If you have questions about terminating your plan or need help preparing the final Form 5500, please contact us.