What is the maximum number of participants a plan can have to qualify as a small plan for filing the Form 5500-SF?

To qualify as a small plan for filing the Form 5500-SF, a retirement plan must have a maximum of 100 participants at the beginning of the plan year. Therefore, the correct understanding of this question hinges upon the definition of a small plan as established by the Employee Benefits Security Administration (EBSA) regulations.

When a plan has 100 or fewer participants, it simplifies the annual reporting requirements, allowing the use of the Form 5500-SF. This form is designed specifically for small retirement plans, which are generally less complex than larger plans and therefore have different filing requirements.

It's important to note that if a plan reaches 100 participants during the plan year, it will not qualify for the Form 5500-SF in the following year and instead must file the standard Form 5500. Understanding these thresholds and criteria is crucial for administrators managing retirement plans to ensure compliance and proper filing.

The definitions of larger plan categories or differing interpretations of participant counts help clarify why options beyond this limit do not meet the criteria for small plans.