Form 5500 Roundup
In January, we issued an ErisaALERT regarding EFAST2. As we are rapidly approaching the due date for calendar year 5500s, we would like to provide a brief update.
EFAST2 new e-signature option
The DOL recently issued guidance relating to a service provider signing the Form 5500 on behalf of their client; question 33A has been added to the list of frequently asked questions. The DOL announcement provides that under this new e-signature option, service providers that manage the filing process for plans can get their own EFAST2 signing credentials and submit the electronic Form 5500 or 5500-SF for the plan. The service provider must confirm that it has specific written authorization from the plan administrator to submit the plan’s electronic filing. In addition, the plan administrator must manually sign a paper copy of the electronically completed Form 5500 or 5500-SF and the service provider must include a PDF copy of the first two pages of the manually signed Form 5500 or 5500-SF as an attachment to the electronic Form 5500 or 5500-SF submitted to EFAST2. The service provider must communicate to the plan administrator any inquiries received from EFAST2, DOL, IRS or PBGC regarding the filing, and inform the plan administrator that, by electing to use this option, the image of the plan administrator’s manual signature will be included with the rest of the return/report posted by the Labor Department on the Internet for public disclosure.
IRS issues Form 5500-EZ
The IRS issued Form 5500-EZ and related instructions this month. Every “one-participant plan” that is required to file a 2009 annual return must file the 2009 Form 5500-EZ(paper format) unless the plan is eligible and chooses to file its return electronically on 2009 Form 5500-SF
A recap of what’s new with the 2009 Form 5500? (this list, while extensive is not all inclusive
Electronic Filing Mandate – Form 5500 must be filed electronically for all plan years beginning on or after January 1, 2009; plan sponsors must keep a copy of the filed form including required signatures and attachments. Amended returns and DFVC filings must be filed electronically.
Schedule SSA used to report information on terminated participants with a deferred vested benefit is no longer filed with the Form 5500. The IRS is expected to issue Form 8955-SSA shortly. Form 8955-SSA is filed with the IRS.
Expanded filing requirements for 403(b) plans – for plan years beginning on or after January 1, 2009, 403(b) plans subject to ERISA are subject to the same annual reporting rules that apply to other qualified plans including the audit requirement if applicable. (see our three part series regarding 403(b) plans)
Form 5558 – used to request a 2 ½ month extension of time to file the Form 5500 is no longer required to be attached to the Form 5500. The Form 5558 is still filed with the IRS and the filer must keep a copy for their records.
Plan characteristic codes – new codes have been added for defined contribution plans that use automatic enrollment (2S) and default investments (2T). Code 3E previously used to identify prototype pension plans has been removed; 3D will be used for all pre-approved pension plans.
Schedule A – a new Part IV has been added for plan administrators to report insurance companies that refuse or fail to provide information necessary to complete Schedule A.
Schedule C – the changes are extensive!!! A future ErisaALERT will discuss the Schedule C changes.
Schedule H – line items has been added to report dividends on mutual fund shares; indicate whether the plan failed to provide benefits when due; indicate whether a blackout notice was provided. Other changes include: There are also some changes to the instructions for line 4g.
Schedule R – a new Part IV has been added to reflect information formerly reported on Schedule E.
Schedules MB and SB – changes have been made to both of these Schedules and should be reviewed for more details.
What should you be doing now?
- Start collecting the information you need; if you are having trouble obtaining the information, document your requests.
- If your plan is subject to an audit, hopefully the process has begun.
- Confirm that your vendor will preparing your 5500 and determine if they will be a “transmitter” for purposes of EFAST2 credentials.
- Leave time for the “signing ceremony”; don’t wait until the last minute to avoid delays in transmission.
- Don’t forget to check the DOL website; there is a lot of useful information regarding Form 5500.
Disclaimer: This material is for the sole purpose of providing general information and does not under any circumstances constitute legal advice and should not be used as a substitute for legal advice. You should seek the advice of counsel when applying the requirements to your plan. For more information on this ErisaALERT contact us by phone at 610-524-5351 and ask for Mary Andersen or 973-994-7539 and ask for Theresa Borzelli.
