An Idaho based ERISA attorney provides helpful suggestions about the 5500 form required to be filed by qualified retirement plans which is due July 31 if extensions are not filed. Though most forms are prepared for plan sponsors by their record keeper or TPA, the person signing the form – that would be you – is liable and responsible for the accuracy of the information. The DOL oftens use 5500 forms to identify red-flags which may trigger an audit.
So what are the 10 items regarding the 5500 form that plans sponsors should consider?
- Name of company – Sometimes names change through mergers or the dba is incorrectly used.
- Proof of filing – Get proof in case there’s any question later on.
- Delinquent Filing – If errors are found or the form is not filed, use the Delinquent Filer Voluntary Compliance Program (DFVCP).
- Audits – The DOL is focusing on audits so make sure your auditor is qualified.
- Late Deposits – Identify, report and correct late deposits which is a big red flag for the DOL.
- New Questions – Though new questions were recently added, it was later determined that they did not have to be answered this year, so don’t.
- Rollovers – Reporting of rollovers of small accounts is often mishandled.
- “Other” – Avoid the use of “other” which can cause further investigations.
- All Plans – Make sure that applicable forms for all plans are filed.
- Short Form – If the 5500 SF is used, make sure that you still qualify.
It’s tempting to just sign the signature ready 5500 form without reviewing it especially if they are due that day but read over the form to make sure it is accurate and give yourself a bit of time in case something seems off.
https://www.erisalawgroup.com/documents/2016-June-Form-5500.pdf
Dorcaskathambi