One requirement for being able to file the Form 5500-SF is that the plan must cover fewer than _____ participants.

To file the Form 5500-SF, a retirement plan must cover fewer than 100 participants. This form is a simplified version of the standard Form 5500, specifically designed for small plans that meet certain criteria. One of these criteria is the participant limit, which allows for a more straightforward reporting process for smaller plans with fewer administrative burdens.

The rationale behind this threshold is to encourage compliance among smaller plans that may not have the same resources or administrative capabilities as larger plans. By establishing the participant limit at less than 100, the government aims to make regulatory compliance more manageable for smaller employers while still maintaining an oversight mechanism.

This rule reflects a recognition of the varying complexities in plan administration based on the number of participants, thus simplifying reporting requirements for plans with fewer participants. In contrast, plans with 100 or more participants are subject to more extensive reporting requirements due to the larger number of stakeholders involved.