True or false; one requirement for filing the Form 5500-SF is that the plan must hold no employer securities at any time during the plan year.

The statement is false. One of the key requirements for filing Form 5500-SF is that the plan must meet specific criteria, including that it should not hold any employer securities. However, this requirement isn't absolute and can vary based on certain conditions. Plans that hold employer securities typically must file the standard Form 5500 instead. Therefore, if a plan holds any employer securities during the plan year, it would not qualify to use Form 5500-SF. The requirement is meant to streamline reporting for smaller plans that meet the necessary qualifications, ensuring they do not engage in activities that complicate the reporting process, such as holding employer securities.