Form 5500 Answers, Wrap Plans and Benefits Compliance

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The Form 5500 series is a joint development by the DOL, the IRS, and the PBGC. It is a series of returns used to register information on employee benefit plans. Created as a disclosure tool and document, it plays a role in assessing economic trends. Its framework designs itself for benefits compliance. It attempts to ensure the proper operation and compliance of requirements. Its function is in regards to the benefit plans and rights of employees.

form 5500 preparation

Filing requirements and procedures

The Form 5500 is for companies with at least 100 employees enrolled in a specific benefit plan. Said companies have to abide by ERISA’s mandatory rule to file the form. In filling it out, taken into account is the type of benefit plans used by employees. Plans subject to ERISA include medical coverage, pension, life insurance and disability benefits. For plans with fewer than 100 participants, companies must use the Form 5500-SF. For non-resident aliens, companies must file the Form 5500-EZ instead.

The Form 5500 and its variations are all available in DOL’s website. Starting January 1, 2010, each form has to undergo electronic submission. DOL accepts either IFILE or EFAST2-approved vendor software. Paper filings are no longer accepted. Form 5500 preparation is subject to the annual reporting requirements posed by ERISA. Companies must file the form within a seven-month period by the end of each plan year. The due date lies on July 31 in the calendar year. Failure to follow the submission of requirements results in large penalties. The only way to reverse sanctions is by submitting said requirements. To avoid acquiring penalties, there is an option to request for a 2.5-month extension. Companies avail of this extension by submitting a Form 5558 before the deadline.

Usually attached to a Form 5500 is a schedule that which depends on the type of filer. On one hand, schedule A must be along with File 5500 in the case of any plans covered by group insurance contracts. On another, schedule C is only required for large funded welfare plans. But this type of situation is uncommon. Form 5500 generally asks for information on a few things. Among these are insurance contracts, service providers, retirement plans, financial condition and transactions, among others.

Wrapping the plan document

To keep track of the benefits compliance in each company, ERISA mandates the use of a wrap plan document. It improves documentation by allowing the compilation of many plans at a time. It serves as a great tool in putting a bigger stack of information into one productive single space. A well-drafted document consists of all important terms and conditions in a plan. In short, it must provide a clean summarized description of the specific benefit plan. Aside from documentation purposes, it also has a use in legal matters. It puts into paper the plan sponsor’s legal obligations, powers and rights. It also records the sponsor’s administrative actions. Additionally, the employer can limit their liability by jotting down their specific terms. These terms are ones they define and set in administrative practice.

The wrap plan comprises one single plan. Hence, only one plan description should be maintained and updated now and then. The plan sponsor should only file one Form 5500 and then attach the schedules. There are separate schedules for each benefit and their respective contracts.

All in all, the use of a wrap plan document acts as a simple solution in reducing administrative expenses. This is especially important in smaller companies. For they usually have fewer resources than large employers. Without a wrap plan to assemble each amendment, documentation poses more hassles. The employer must provide separate articles for each plan for every change implemented. To adhere to the regulations set by ERISA, the easiest way to go about this is to provide a single document. This document compiles each important content that matches ERISA’s requirements. In fact, the significance of proving summaries cannot be stressed enough. As long as one follows instructions, the whole process should be as smooth as can be.

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Benefits of Benefits Compliance

There are many benefits of benefits compliance. This article talks about just a few of those benefits in business.

So a group of persons comprises a company. Each person possesses rights both as an individual and as a member of a functioning society. One fundamental right of an individual is to have access to benefits and welfare. A running business is hence obligated to protect the rights of its employees. It should work towards ensuring social security. But benefits compliance still has to adhere to the rules set by the industry and government. Laws and policies regard the type of benefits and plans often provided to employees.

To manage employees’ benefit plans, a company must use a wrap plan document to record a plan’s details. Section 402 of the Employee Retirement Income Security Act mandates the use of the wrap plan. A wrap plan document is a legal document that assembles all plan contracts into a single plan. The design of this tool ensures better compliance to government laws. It also encourages better administration of benefits compliance.

benefits of benefits compliance

The employer or sponsor follows a certain process when a plan has more than 100 participants. Under one copy of Form 5500, the sponsor creates and files separate schedules. In general, employees usually take advantage of health and welfare plans. But the list can also extend to pension plans and retirement arrangements. Other examples of plans are drug prescription plans and life insurance, among others. As of 1974, these benefits are all subject to the requirements of ERISA. A company must pay attention to the deadlines. They must do the Form 5500 preparation every year, within seven months at the end of each plan year. If following the calendar year, the due date would then be on July 31.

As you can see the benefits of benefits compliance is far reaching.

The Form 5500 series is a joint project developed by the DOL, the IRS and the PBGC. Its specific role or function is to collect information on employee benefit plans. It assesses various variables in a business environment. Such variables include financial status, transactions, investments, insurance and operations of all plans. Benefits compliance makes sure to include all required information when filing the forms. From a legal perspective, the form establishes fiduciary. It lays down the responsibilities of an employer to their employee and vice versa. It also makes official the compliance to benefit plans. This is especially when it’s oversaw by an organized governmental body.

Benefits compliance isn’t only for documentation purposes. It also reaches out to other areas of business and industry. It has an important role in the entire company’s decision-making process. It’s a good supplement to keeping track with daily sociological trends. This is especially important with the rapid pace of industry today. Information must always pass over to people in as smooth a process as possible. Both the employers and the employees must cooperate together in this event. To assist with the task of managing plans, a person or persons with industry knowledge do the work. They’re there to make sure the entire process runs as well as possible. The benefits of benefits compliance services usually cover access to experienced attorneys, consultants and professionals.

To summarize, the role of ERISA and its implications on work life has been highlighted. A client or participant hence has the responsibility to be aware of the principles they need to abide by. They also have the right to take advantage of benefits that relate to their status as an employee. As much as possible, troubles should not pose during the process of applying for plans. An employee should be able to enroll in their chosen benefit plan. An employer then has to take the responsibility of filing the wrap plan document. Every individual has the right to good health and well-being. Hence, a person’s priorities outside of work must take precedence.

The benefits of benefits compliance is ongoing in business. As companies continue to grow online and offline there will always be uncontrollable and new factors that will need addressed. If you have questions about benefits compliance, Form 5500, wrap plan document or the Delinquent Filer Voluntary Compliance Program we offer consulting, preparation of forms and filings your business needs to stay compliant.

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The Idea and Process Behind Benefits Compliance

The benefits compliance process is well documented and is a much needed part of a US based business.

Before starting a business, you must know the government’s rules first. A company’s laws depend on a few things like its size, number of employees and property type.

Labor laws exist to ensure people’s satisfaction with their professional lives. An employer must always know how to form good relationships with their employees. To do so, they must understand the needs of their people, and cater to those specific needs.

In a work setting, employees often look for ways to improve their lives. One way they do this is by taking advantage of certain benefits. Benefit plans in business exist for this very purpose. A good employer must know the importance of following benefits compliance.

In general, employees usually avail of health plans, welfare plans, retirement arrangements, profit sharing plans, life insurance, disability insurance and medical coverage. Most of these benefit plans are under the Employee Retirement Income Security Act, as of 1974. ERISA’s main aim is to protect the employees’ rights to a good well-being.

Compliance of benefit plans follows a certain process. First, most companies must do the Form 5500 preparation. The Form 5500 is the annual report of employee information. It contains and collects the major details about a person’s benefit plans. Companies with 100 or more employees who have benefit plans must file the Form 5500 every year. Participants don’t cover dependents. They only include employees, retirees and primary COBRA beneficiaries. For companies with fewer than 100 participants, a different form is otherwise used.

Attached to the Form 5500 are schedules. The schedule attached depends on certain categories, like the type of filer. Usually considered when filling out the Form 5500 are financial transactions, retirement pension, insurance contracts, defined benefit plan information, and service providers. All requested information must be filled out as indicated in the Form 5500.

As of 2010, all variations of Form 5500, along with the schedules, must be submitted online. In this case, one uses the EFAST2 system. DOL allows the use of EFAST2-approved third-party software. Another alternative is its online filing system IFILE . The due date of filing the form is within seven months following the end of the plan year. Another option, though, is submitting a Form 5558 to extend the due date by two and a half months. The Form 5500 series is bound to all guidelines set by the DOL, IRS and PBGC. One receives penalties when they fail to submit the requirements on time. The Form 5500 is used to measure economic and psychological trends in industry. The form acts a disclosure tool and protects the rights of the participating people.

An employer is always encouraged to provide welfare benefit plans to their employees. For organization purposes, ERISA also mandates the use of wrap plan document. This document records the terms and conditions of each benefit plan. Its design makes it so that it includes all information required by ERISA. A well-drafted plan document consists of eligibility requirements, plan procedures, and coverage length. In short, it must provide an accurate summary of the plan’s information. It should encourage strict compliance to ERISA’s requirements. Its purpose also is to help the company easily keep track of many documents all at once. This assists in wide-scope auditing and decision-making.

Meeting the requirements for benefits compliance is a necessity in every company. It’s a task that requires an ability to keep up with new updates and changes in the industry. Hence, businesses usually hire experts to handle the processing of benefit plans. Additionally, there must be a smooth delivery of information between the people involved. In this case, it’s between the regulators and the clients. It’s important that everyone is aware of the different principles they should follow. On the other hand, a good management team must be capable of abiding by the rules. They must watch over the entire process of benefits compliance. This is so they can identify any possible issues as soon as they rise up. Making informed decisions is a must in business.


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Our company specializes in benefits compliance services for delinquent filer voluntary compliance program, Form 5500, wrap plan document, 401k preparation filings and much more.

 

 

DOL Form 5500 Modernization Proposal Faces an Uncertain Future

DOL Form 5500 modernization proposal faces an uncertain future and many businesses don’t know how to react.

Deal with the Labor Division’s effort to expand, streamline as well as update the DOL Form 5500 Collection has actually been halted till a new head of the DOL’s Employee Advantage Protection Administration (EBSA) remains in place, according to ERISA lawyer S. Derrin Watson.

Work with the Labor Division’s effort to increase, improve and also update the Type 5500 Collection has actually been stopped up until a brand-new head of the DOL’s Staff member Perk Safety and security Administration (EBSA) remains in place, inning accordance with ERISA attorney S. Derrin Watson.

Leading a workshop session at the 2017 ASPPA Yearly Meeting Oct. 23, Watson noted that Preston Rutledge, senior tax obligation as well as benefits advise on the Republican tax staff of the Us senate Money Committee, has been nominated to serve as head of the EBSA. Even thinking that Rutledge’s election is approved and he fills up the leadership vacuum at EBSA, “it is not most likely the [DOL form 5500 innovation] effort will certainly be high on his listing of priorities,” said Watson, keeping in mind that the fiduciary regulation will likely be his key emphasis.

As well as of course, the Trump administration’s restrictive view of the duty of the federal government generally, and also of federal guideline particularly, is basically the polar opposite of the view of the Obama administration, under which the Kind 5500 modernization effort was developed and also promoted. “There are a number of things I believe the new political leadership will wish to take in a different direction,” Watson informed guests.

ARA General Counsel Craig Hoffman, who regulated the session, kept in mind one element that might apply pressure on the EBSA to shuffle the Kind 5500 initiative higher on its checklist of priorities: the impending have to renew the vendor contract for administration of the EFAST digital filing system. Hoffman additionally suggested that also if the innovation proposition is withdrawn or reconsidered after brand-new leadership remains in area at EBSA, “some pieces of it might be burst out as well as relocated independently,” consisting of numerous arrangements that ASPPA supports.

Generally, the considerable expansion of the extent of the information gathered on the DOL Form 5500 Series proposed by the EBSA would certainly develop substantial new problems on those that prepare the kinds, and also the focus on higher public access would be a boon to plaintiffs’ lawyers. But Watson did highlight some excellent information, or even a possible company growth chance.

The Bright Side

Watson noted a significant enhancement in the means tiny DC plans are differentiated from large ones: Under the proposal, the interpretation would be based on the variety of active individuals with account balances.

Additionally, 5500-EZs and Kind 5558 expansion demands can be filed electronically (paper declaring would still be offered). The latter might be a long-sought service to the problem come across by filers that submitted a 5558 but found that the kind had actually not been processed by the DOL by the end of the expansion, causing a “late” declaring that had not been really late.

To fit a brand-new reporting demand for health insurance plan developed by the Affordable Care Act (ACA), the EBSA’s Type 5500 innovation proposition consists of a required that all health plans must report ACA-mandated information on a brand-new Set up J. Keeping in mind that the DOL estimates that this new reporting demand will include over 2 million new DOL Form 5500, Watson asked: “Do you see an opportunity to increase your business?”


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Form 5500 Schedule C Filings

Form 5500 Schedule C Filing Requirements

What is Form 5500 Form?

Form 5500 is the form used to file the Annual Report of Employee Benefit Plan information with the DOL (Department of Labor). If the Employee Benefit Plan is subject to ERISA (the Employee Benefit Income Security Act of 1974), form 5500 must be filed annually. ERISA requires that companies file information on their qualified welfare and pension plans with the IRS every year.

Who Needs to File Form 5500?

The sponsor of the Employee Benefit Plan or arrangement that is subject to ERISA must file Form 5500. Plans that are subject to ERISA include, but are not limited to:

– Profit sharing plans
– 401(k) plans
– Stock bonus plans
– Money purchase plans
– Certain annuity arrangements
– Church pension plans elected to be covered by ERISA
– Individual retirement plans established by employers
– Certain welfare benefit plans providing medical and dental benefits, severance pay, and life insurance.

form 5500 schedule c

How to File Form 5500

The 5500 form is due on the last day of the month following the 7th calendar month from the end of the plan year. This means July 31 for the calendar year plans, assuming it is a business day. The due date can be extended by 2 – 2 ½ months by submitting Form 5558 on or before the original due date of Form 5500. A Corporate Tax Extension Form 7004 can also be used to extend the filing of Form 5500 by 1 – 1 ½ months if the corporate fiscal year and the plan year are the same.

The form must reflect the characteristics of the plan and its operations and consists of the main form together with required schedules and attachments. Specific schedules required will depend on the type of filer and is generally broken down into 2 categories: Pension benefits; and Welfare Benefits – further subdivided into large or small plans.

What is Form 5500 Schedule C?

For large plans Form 5500 Schedule C must be filed which outlines service providers utilized by the plan to whom more than $5,000 were paid in fees; or an enrolled actuary or accountant whose services were terminated in the plan year. In general, large plans with participants of 100 or more have more complex reporting requirements than One-participant plans. Usually, these plans are required to include audited financial statements and to file Schedule C. Schedule C Form 5500 requires expanded reporting on fees for services rendered by providers that became effective from the beginning of January 1, 2009.

Form 5500 Schedule C Consulting

If you need help preparing your Form 5500, our company has been assisting plan sponsors and employee benefits brokers in eliminating the worry and burden associated with the Form 5500 filing process. Our dedicated customer service and proven processes have made us one of the most trusted ERISA Health and Welfare reporting companies in the business. The Plan Sponsor is ultimately responsible for the complete and accurate filings of Form 5500, and our expert consultants can assist your business in ensuring that your filings are prepared in accordance with ERISA reporting standards without the worry of comebacks from the Department of Labor.

We provide many Plan Sponsor needs including the following:

– Managing timing and deadlines
– Gathering Schedule C data from administrators and insurance companies
– Help ensure compliance
– Manage ERISA requirements and changes over time
– Provide e-filing instructions and guidelines
– Discuss and review preparation and completion of schedule C
– Prepare signature-ready Form 5500 Schedule C for E-Filing
– Prepare Form 5558 Extension of Time to File if necessary
– Prepare Summary Annual Reports
– Keep up to date with changes in the Federal Rules and Regulations that impact Form 5500 submissions.
– Present recent updates from the IRS and DOL
– Help avoid penalties


Give us a call today at (515)-244-2424 to discuss the best solutions to your Form 5500 Schedule C filing issues. Our expert team of consultants will provide you with complete peace of mind that your Form 5500 filings are compliant and up to date.

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ERISA Procedures For Disability Provider Plans Went Into Effect April 1

For employers that sponsor a disability benefit plan governed by ERISA, March and April of 2018 represent an important period of time.

Claims filed later than April 1 must be in compliance with a new Department of Labor rule issued back in December of 2016. Among the plans falling under this umbrella are certain qualified retirement plans, health and welfare plans as well as non qualified plans for deferred compensation. The purpose of the new requirements is to boost disclosures to participants in the plans and to increase impartiality of those who make decisions concerning the plans.

Categories Of Affected Plans

In a general sense, the new regulations are applicable toward any plan that falls under the auspices of the Employee Retirement Income Security Act (ERISA). Every plan, including those related to disability benefits, that involves the claims adjudicator of that plan to make disability determinations before rendering a payment decision is part of the new layout. Thus, all employers need to take a fresh look at plans providing benefits, waiver of accrual allocation rules or accelerated vesting due to disability.

Impact On Qualified Retirement Plan Operation

It may be necessary to update retirement plans if their plan administrators are charged with determining disability. But, if such determinations are made by third parties such as the Social Security Administration or other entity, there may be no need for an update.

While it is true that non qualified deferred compensation programs largely fall outside of the ERISA regulations, they are subjected to the statutory claims regulation rules. As such, these plans will require compliance with the new rule if their administrators are the ones to make disability decisions.

Implications For Welfare Plans

The majority of plans covered by ERISA are in fact insured, and therefore broadly speaking, it is the disability carrier’s duty to make changes to claim processes and procedures. Employers and/or plan administrators ought to communicate with the insurers to ensure that coverage certificates will be appropriately updated to achieve compliance with the new rule by April 1 of 2018.

Short-term disability plans that are self-insured and that qualify as a payroll practice may also not require revision, given that they are exempted from ERISA. It should be noted, though, that administrators of such plans may wish to adopt part of even all of the final rule’s provisions, in keeping with best practices. Also, it is important that summary plan description documents and wrap plans be updated and disseminated to all plan participants.

Key Changes Within The New Rule

Every claim and appeal must now receive adjudication in a way that fosters the impartiality and full independence of those making benefit decisions. Much like the rules pertaining to group health care plans promulgated as part of the Affordable Care Act, determinations related to the compensation, hiring, promotion, termination or other issue impacting an adjudicator must never be made with an eye toward the chances that individual will support benefits denials.

Bolstered Disclosure Rules

First, a claim denial, whether at the first denial stage or later as part of an appeal, must have as part of it a discussion about the decision itself. This should include the rationale for any disagreement with the vocational expert, treating doctor or other expert who assessed the claimant; the opinions of experts secured by the plan; and a Social Security Administration disability determination offered to the plan by the claimant.

Furthermore, a denial notice needs to include all guidelines, internal rules, standards and protocols utilized in rendering an adverse claim decision (or in the alternative, a statement that no such criteria exist). There also must be a formal statement that the claimant at issue is entitled to be provided with all relevant documents upon request.

Right To Receive, Review And Refute New Facts Prior to Decision

So that all reviews are full and fairly rendered, plans are required to give claimants all new evidence or rationales used in making the benefit determination. This material must be provided to the claimant immediately and with enough advance time before the decision date so that a response by the claimant is possible. This way, claimants have an opportunity to present their side at the level of an administrative appeal instead of having to wait until the issuance of a denial.

Exhaustion Of Remedies

In cases where a plan has not met all of the claim procedural requirements, normally a claimant would have been declared to have exhausted all available administrative remedies and a lawsuit against the plan could be commenced. But, plans can still be in compliance if their rule violation was deemed non-prejudicial, de minimis, the result of good cause or something the plan could not control, made in the context of a good faith exchange and not part of an overall pattern of violation.

Rescission of coverage is in and of itself an adverse benefit adjudication. Rescission of disability coverage made retroactively is also an adverse determination and is subject to the appeals process. It must be noted that termination of coverage because of premium nonpayment does not equate to a coverage rescission.

It is necessary for all notices to be rendered in a manner that is both linguistically and culturally proper. In the same vein as the ACA rules pertaining to group health care plans, if the relevant claimant’s address of record is within a country with more than 10 percent non-English speakers, claim denial documents must be accompanied by a statement in the appropriate language, indicating how language interpretation services may be accessed.

Disclosures Regarding Contractual Limitations Time Frame

Plans with restrictions on the time period available for claimants to file lawsuits need to include on their denial notices information regarding this limit. For instances, if the relevant state has a normal limitations period of five years, but the plan’s contract states that the period is just three years, denial notices must state this fact along with the exact expiration date. Best practices suggest that this type of notice should also accompany denial notices for group health plans and other plans.

Ultimately, every employer potentially affected should make certain to review the new regulations alongside their plan documents to ascertain which rules are relevant to their activities. Furthermore, updates to SPDs should be promptly undertaken in order to achieve full compliance with the new disclosure measures outlined above.


Does this all sound complicated?

Benefits Compliance Consultants Inc. make ERISA compliance easy with system processes that allow you and your employees to sleep better and work harder during the day or night.

We are your one-stop for any and all From 5500 preparation. Need assistance for DOL Audit of your business or want to protect yourself before you have one? We can help with that too.

We are plan document specialists that can help you and your business save time and money.

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Stay Compliant With An Annual Wrap Form Review

Its time for an annual review and update of your wrap form documents.

If you would like to stay compliant with your business, you may want to consider doing an annual wrap form review. It’s always good to review the performance of your company, and by doing so, you can identify certain aspects of your business that need to be improved. This is true with not only companies, but individuals. You may be in charge of people that your company that you are having to review on an annual basis. It is only through these reviews that positive changes can be made and problems can be addressed. Let’s look at how you can stay compliant with an annual wrap form review.

Why Annual Reviews Are Always Necessary

Reviews are always going to be necessary for a business. You could have a small company, or a very large corporation. The reviews that you subject your company to could be looking at departments, individuals, or even managers. The reason that you need to have this done at least once a year is to keep track of problems that may be occurring. This could lead to loss in revenue, or even legal problems. When you know what’s going on with every aspect of your business, this can make it more compliant with local laws and regulations that you should be focused on.

The Importance Of Staying Compliant

Compliance is a scary term for many but in the world of business, it is in reference to rules and laws that must be abided by. There will always be state and federal laws and codes that you must follow, and within the context of your business, there are rules and regulations that you have likely set up. When employees are not aware that they are causing problems, or when departments are not compliant with rules that must be adhered to, this can cause a lot of problems. You could find yourself in the midst of a lawsuit, or at the very least, departments may cause your business to lose money.

Our Benefits Consulting Group Is A Plan Document Preparation, Summary Plan Description and Wrap Plan Services Solution.

How To Conduct Annual Reviews

Annual reviews should be done with each individual that is part of your business. You will want to do this with all of your workers in each department. Then, you will want to interview the managers or department heads to talk to them about not only the employees, but their own performance, to make sure they are on track. It is also possible to benefit from reviewing the president of the company, CEO, or CFO. These people are experts in their industry, but they are being paid top dollar for their services. You need to make sure that they are compliant in every way that they must be.

Will It Take Long To Review Everyone?

It will not take very long to interview everyone that is part of your business. You can set up times to interview each person that is there. Once this is done, you can evaluate this information, make recommendations to individuals, and every department that you have as part of your company or corporation. Those that choose not to do this are at the mercy of mistakes that can be made every day. Unless people are alerted to performance issues, or not being compliant with laws and regulations, they will continue to do so without knowing. Once they are made aware of problems that they may be causing, or rules and codes that they are violating, it is now up to them to get back on track.

To stay compliant, it is important to use annual wrap form reviews that can help your company stay profitable. Compliance with laws and ordinances is something that simply must be done. If you haven’t done this before, it’s a great place to begin to develop this relationship with everyone in your company, plus they will know that you are holding them accountable for their performance. You can find out more about annual wrap form reviews and get the guidance you need by contacting us. Compliance with rules and regulations, as well as laws and ordinances, is something that must be done, and these reviews can help resolve any adverse situations.

Discover The Facts About The Benefits Compliance Form 5500 Preparation For Business

If you are reading this page you may need Form 5500 Preparation for business.

As of 2016, those who need to file Form 5500 for the employee Benefit Plan can do so electronically. This form and the need to file it was formulated by the Internal Revenue Service and Department of Labor as well as the PBG Corporation. It is for the purposes of collecting information about employee benefits provided by the companies they work for and the information includes pension plans and health plans.

Who Needs To File This Form?

Any company who sponsors any plan that falls under ERISA we’ll need to file this form. It can include plans for severance pay, profit-sharing, life insurance, 401K plans, dental and medical insurance, and stock bonuses. As well, it can include any type of retirement arrangements or pension plans including annuity agreements.

If a company has fewer than 100 employees that fall under these plans, then they only need to file the short form. If a company is outside of the US and its employees are nonresident aliens then they can file the EZ form. Any company needing the forms can find them at the Department of Labor website.

About Form 5500

ERISA is a term that references the ‘Employee Retirement Income Security Act’. This is an annual report of employee benefits provided by a company. Any company that falls under ERISA will be required to file this report annually. Among the plans that require the submission of this form, can include trust, various accounts, and other investment arrangements that would need reporting on this form.

The IRS and the Department of Labor along with the PBG corporation have worked together to consolidate some of the forms and reports to reduce the burden created by having too many different forms to submit. Those employers who comply with this new form submission will meet their reporting requirements and satisfy the IRS and the DOL.

Additional Requirements

Submission will need to reflect the accurate details of the particular year the form is being submitted for. Requirements related to submitting this form will vary depending on the type of plans being reported on and their particular arrangements. There is a quick reference chart to help employers understand their responsibilities and help guide them with filling out the report correctly.

Changes In The Report

There were changes in the maximum penalty that can be applied for a failure to report. Instructions on reporting have been updated. The penalty that can be applied to employers who refuse to comply with this reporting mechanism can be as much as $2,063 a day. These increases went into effect in August of 2016. From 2017 on, the penalty amount will be adjusted based on inflation each year on January 15th.

How To Get Help When You Need It

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Any employer or administrator that has questions or is unsure how to correctly fill out the form can contact a help line at 1-866- GO-EFAST. It’s also possible to reach their website anytime of day or night and any day of the week. On the website, you’re able to check frequently asked questions as well as the status of your filing and view any filings that have been posted. As well, you can access the website for the IRS any time of day or night and view any forms or publications or instructions that they have as well as answers to frequently asked questions regarding taxation.

Reporting Welfare Benefits

Any employer or administrator who manages an employee welfare benefit plan, whether that plan provides all or part of the benefits, must file the Form 5500 unless they have been given a special exemption. There are some special provisions based around whether the plan covers less than 100 participants or more than that number, and this information can be found on lines 5 and 6 of the instructions.

When To File

Any forms and accompanying statements must be filed by the 7th calendar month of the end of the plan. None of the forms should include details that exceed 12 months. Include the beginning and ending dates of the information being provided and place that in the Box on part 1 in line B.

These are the basics of filing this form.

For more information and to avoid stiff penalties this form should be submitted annually as required by law.

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Retirement In Your 60’s: How Much Should You Have In Your 401k Plan?

Retirement age might seem far away from you for now, but it doesn’t mean that it’ll never come. Preparing for your future is never too early or too late. Everything that you’ll be saving up from your salary right now will pay off in the future. But it can be very difficult to save up most of the time especially if you’re in your 20’s and you’re still enjoying your life. There are still things that you want to buy and places that you want to go to. All of these things might make you lose focus and end up with no savings at all.

So what should you do to have enough savings in the future? 401(k) plans are now being offered by employers to their employees. You might have heard about them before in your office but had no idea what it is. You may already have one. This article will help you understand how it can help you with your lifetime savings.

The 401(k) Plan

The 401(k) is basically a retirement plan that is sponsored by an employer. It helps employees manage their savings better and their future finances by taking a part of their salary and investing it in their savings. It is just like pension funds but more flexible. This is because you can control the money that you want to invest. There are plans that you can invest in bonds, stocks, and money market investments.

How Much Will You Receive For Retirement?

It’s easy to say how you’ll be saving up for your future and how you plan to become a millionaire by the age of 50. But it is not easy to do it. And one of the reasons why is because you are not sure of how much you should be saving up. Lack of proper planning for your retirement and for your personal finances make you unfocused on your goals.

If you don’t have a clear plan, you won’t reach your target savings. And this is how a 401(k) plan becomes very useful for you. The amount that you want to save is automatically removed from your salary, therefore preventing you from spending it on things that you don’t need like that shoes that you saw in the mall last week or that bag that you have been eyeing for months now.

Let’s go back to the question. How much are you going to receive for your retirement if you invest in a 401(k) plan? While it is impossible to say a specific amount because the economy is always changing, experts were still able to estimate how much money you are likely to have in your plan once you retire in your 60’s.

According to them, assuming that you have a $1,000 balance in your plan and start your career at the age of 22, with a salary of $40,00 an annual increase of 3%, a contribution rate of 10%, and returns of 8% annually, your balance can amount to $3.1 by the age of 66. This money is already more than enough for you and your family when you retire.

Do You Need A 401K Form 5500 Filing Consultant?

What Are The Benefits Of This Retirement Plan?

It is very motivating to know the potential amount of money that you can get through a 401(k) plan. And to make you even more motivated to save up, here are some benefits that come with this retirement plan.

• The amount of money that you contribute to your 401(k) is exempted from tax. This means that your taxable income is lowered. In addition to this, the dividend, as well as your capital gains that are earned through your 401(k), are also not subject to taxes until you withdraw it from your retirement plan.

• Some retirement accounts like the IRAs limit people from contributing once they turn 70 ½ which is unlike 401(k) plans that will allow you to contribute as long as you want while you are still working.

The 401(k) plan is undoubtedly a good way of making your savings earned. The amount of money that you can save up using this plan is also really good. However, the bottom line for every savings plan is that you are always in control of your money. You can either save a lot or end up having none at all. If you are not mindful of your expenses, you won’t succeed even if you have a 401(k) plan.

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401k Form 5500 Filing Services

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The Due Date For Your 401K Form 5500 Is Now!

Form 5500 401k is due by the end of July, 2017! Do you help preparing or filing?

The IRS Form 5500 for the defined-benefit plans are always due seven months once the plan year has ended. For the Calendar Year Plan years, the date is 31 July which follows the plan-year. There are 2 extensions types that can apply that allow an IRS Form 5500 to be filed at a later date this includes:

When a plan sponsor has requested for an extension in regards to their corporate taxes, that will move the IRS Form 5500 due date from the 31 July to the 15 September

• When the plan sponsor has filed a Form 5558 that extends the actual filing date that will move the deadline for filing to the 15 October. The Form 5558 will have to be filed before the 31 July in order to qualify for this extension

The plan administrators are able to request extensions in regards to your due date for filing by:

• By filing the Form 5558 for an Application for Extension of Time in order to File Certain Employee Plan Returns. This needs to be sent to the Internal Revenue Service before or on the standard due date for filing. You will need to retain a copy of this extension with your permanent records of the plan. You are able to download this form directly from the Internal Revenue Service website.

How To File Your Form 5500

You will need to file a completed Form 5500 along with any related schedules to the Department of labor which will be specified in the Form 5500 instructions found under “Electronic Filing Requirement.” You can choose to use either an EFAST2-approved Vendor’s Filing System or the EFAST2’s Web-Based Filing System. For detailed information associated with electronic filing you can visit www.efast.dol.gov.

BC2 offers preparation services of the Form 5500 along with any related SAR and filing options. If you happen to be interested in these services it is advisable to make contact with us today! You can call from Monday to Friday on (515)244-2424 in order to speak to one of our consultants.

Rolling Dates

Most of the dates associated with the due date on the retirement plans will depend on the Plan Year. Most of the plans are typically administered on the calendar year. However, a large portion is actually administered according to the fiscal year. In many cases when the company that sponsors these plans runs on the fiscal year, the plan will typically run on this same fiscal-year. Here is a list of rolling-due dates:

• Compliance Corrections- 2 and ½ months after the plan year has ended

• Contributions For Deduction Purposes- 2 and ½ months for the corporations and 3 and ½ month for the others

• Mandatory Contributions- 8 and ½ months once the plan year has ended


Do you need help with IRS Form 5500 preparation and filing. Call us today at (515)244-2424

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