Instructions For Form 5310 (Revised January 1996) Application For Determination For Terminating Plan (Page 4 of 4) in pdf

Line 15h(4)(A).—All plan liabilities must

this question “Yes” merely because the

payments due and not paid before the

proposed termination date.

be satisfied before assets can revert to

plan has been considered under the

the employer upon termination of the

IRS’s Voluntary Compliance Resolution

Line 18c(4).—Include investment

Program.

plan. All liabilities will not be satisfied if

securities issued by a corporate entity at

the value of retirement-type subsidies

Line 15j.—For this question only,

a stated interest rate repayable on a

are not provided participants who, after

“single-sum distribution” will mean a

particular future date such as most

the date of the proposed termination,

single payment of the value of a

bonds, debentures, convertible

satisfy certain pre-termination conditions

debentures, commercial paper and zero

participant’s benefits or a series of

necessary to receive such benefits. See

payments that do not provide

coupon bonds. Do not include debt

section 401(a)(2), Regulations section

substantially equal payments (either

securities of Governmental units or

1.401-2(a)(1) and Rev. Rul. 85-6.

municipalities.

alone or in conjunction with other benefit

Line 15h(4)(B).—The annuity contracts

payments) over the life of the

“Preferred” means any of the above

participant.

purchased must be guaranteed for each

securities that are publicly traded on a

participant. However, in order to

recognized securities exchange and the

Line 15l.—Code section 416 provides

maintain qualification of a continuing

that plan participants in a top-heavy

securities have a rating of “A” or above.

pension plan, the contracts covering

plan who are non-key employees must

If the securities are not “Preferred” they

participants’ accrued benefits in the plan

accrue a minimum benefit or receive a

are listed as “Other.”

must not be distributed except in

minimum contribution.

Line 18c(7)(A).—Include the current

accordance with Regulations section

Line 16.—Complete this only for defined

value of real property owned by the plan

1.401-1(b)(1)(i).

which produces income from rentals,

contribution plans. Enter the dates of the

Line 15h(7).—Answer “Yes” if your plan

current plan year and the prior 5 plan

etc. Do not include this property in line

is a defined benefit plan and you intend

years in the columns indicated.

18e (buildings and other property used

that any or all of your participants will be

in plan operations).

Line 16a.—Enter the amount of

covered by a new or existing defined

employer contributions made for each of

Line 18c(7)(B).—Include the current

benefit plan of the employer.

the plan years.

value of real property owned by the plan

Line 15h(10).—If the answer to this item

which is not producing income or used

Line 16b.—Enter the amount of the

is “Yes,” attach a list that includes the

in plan operations.

forfeitures allocated for each of the plan

name(s) of the plan sponsor(s), employer

years.

Line 18i.—Acquisition Indebtedness.—

or sponsor’s identification number(s);

“Acquisition indebtedness,” for

Line 17.—Check the box(es) that

administrator’s identification number(s),

debt-financed property other than real

indicates the form(s) of distribution of

plan number(s) and an explanation of the

property, means the outstanding amount

benefits for your plan upon termination.

termination(s) including the amount(s) of

of the principal debt incurred:

Line 18.—Complete the statement

the reversion(s), the date(s) of

1. by the organization in acquiring or

showing the estimated fair market value

termination and the reason(s) for

improving the property;

of the plan assets and liabilities as of the

termination.

proposed date of termination.

2. before the acquisition or

Line 15i.—If the plan or trust is under

improvement of the property if the debt

Include and clearly identify all liabilities

examination or if there is an issue

was incurred only to acquire or improve

(other than liabilities for benefit

related to the plan or trust pending

the property; or

payments due after the date of plan

before the Internal Revenue Service, the

termination) that are unpaid as of the

3. after the acquisition or improvement

Department of Labor or the Pension

proposed termination date or that are

of the property if the debt was incurred

Benefit Guaranty Corporation, or any

only to acquire or improve the property

paid or payable from plan assets after

court, check “Yes” and attach an

the proposed date of plan termination

and was reasonably foreseeable at the

explanation detailing the specific nature

under the provisions of the plan.

time of such acquisition or improvement.

of the matter. Also specify which agency

Liabilities include expenses, fees, other

or court is considering the matter.

For more details, see Code section

administrative costs, and benefit

Otherwise, check “No.” Do not answer

514(c).

Page 4

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Instructions For Form 5310 (Revised January 1996) Application For Determination For Terminating Plan Page 4

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