Topic Archive: Form 5500

Is It Possible to Avoid an Audit for the First (Short) Year of Our Plan?

DWC | 10/1/19

Facts

Our company has about 200 employees, and we launched a new 401(k) plan on October of last year.  We were eager for all of our existing employees to get excited about this new benefit, so we waived the waiting period to join so that everyone would be eligible on day one.  The good news is that it worked, and we had a lot of our employees sign up for the plan.  The bad news is that no one warned us ahead of time (and that our current TPA just told us) that we must have the plan audited for that three-month period because we have more than 100 employees eligible when we launched the plan.  Adding insult to injury, we have to rush to get it done in time to file our first Form 5500 by October 15th!  Yikes!

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Meet the MEPs: Grab Bag

DWC | 09/11/19

The Department of Labor’s new regulations that expand the availability of multiple employer plans cover quite a bit of ground.  In previous posts, we’ve explored Association MEPs, PEO MEPs, Corporate MEPs, and working owners.

Though not technically part of the regulations themselves, the Department of Labor also addresses a grab bag of questions that came in through the comment process in the preamble.  In this post, we will run through some of those items.

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Are We Required to Force Former Employees to Take Their Money Out of Our Plan?

DWC | 04/23/19

Facts

We just received our year end testing and it mentioned that we have several terminated participants with small balances that we are required to distribute from the plan.  I remember seeing something in one of our documents that mentioned distributions for account balances below $5,000, but I’m not entirely sure what that means or how I’m supposed to accomplish it.

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What is the Form 8955-SSA and What Does It Do?

DWC | 04/2/19

Facts

Our company has been very fortunate to have low turnover over the years.  Those that have left either were not eligible for our 401(k) plan, or they had very small balances and had their accounts forced out when they terminated.  We recently did have one longer-term employee leave us.  She was an active participant in our plan and has a sizeable balance that is well above our plan’s mandatory distribution threshold.  Our TPA said that we now have to file some new form – an 8955-SSA, I think – that has something to do with this former employee.

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How (and for How Long) Can I Extend the Deadline to File our Form 5500?

DWC | 03/26/19

Facts

We’ve had our retirement plan for a couple of years now and feel that we are finally getting the hang of the various deadlines for our plan.  There is just one deadline that I always have trouble remembering: the extended deadline for filing our Form 5500 with the DOL.  I’ve heard that if we extend our corporate taxes, it is the due date of our tax return.  I’ve also read that we can file an extension of the Form 5500 by filing a Form 5558 which will extend the filing deadline to two and a half months after the original filing deadline.  Obviously, these are two separate dates.  I just want to make sure that I am doing everything timely.

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Decoding the Alphabet Soup: What's With All the Acronyms? | Part 3

DWC | 09/11/18

Facts

People in the retirement plan business sure do like their acronyms.  All these letters get thrown around, and I do not know what half of them mean.

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What Is The Difference Between Fiduciary Liability Insurance and a Fidelity Bond?

DWC | 04/10/18

Facts

My company sponsors a 401(k) plan. With everything that has been in the news about retirement plan fiduciaries and some of the lawsuits against them, we are trying to decide whether or not we should get fiduciary liability insurance for ourselves. Then I looked at our Form 5500 and it shows that we already have plan-related insurance.

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Should We Split Our 401(k) Plan to Avoid the Annual Audit?

DWC | 02/6/18

Facts

Our company has been growing over the last couple of years, which is a good thing. However, after seeing your last two Questions of the Week (here and here), I am concerned about the need to have our 401(k) plan audited. We are committed to keeping the plan in compliance, but I cringe at the thought of searching for an auditor and dealing with the related costs.

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How Do You Select a CPA for Your Annual 401(k) Audit?

DWC | 01/30/18

Facts

With over 100 participants in our 401(k) plan in 2017, we have learned that our plan will now require an audit each plan year from an Independent Qualified Public Accountant (IQPA). This will be the first year the plan is subject to an audit. The idea of beginning this process is daunting and a little unnerving, to say the least!

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When Does My Plan Need An Outside Audit?

DWC | 01/23/18

Facts

We are a small business that has been growing quite a bit in the last couple of years and are now up to about 100 employees. Our company has a 401(k) plan and most of the employees who are eligible for it are contributing. We have been told that because of the size of our plan, we might need to have it audited each year by an outside accounting firm.

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The views expressed in this blog are those of the authors and do not necessarily represent the views of any other person or organization. All content is provided for informational purposes only and is not intended to be tax or legal advice.