Every Year the Department of Labor (DOL) Rejects Hundreds of Form 5500 Returns Due to Common Mistakes Such as:
Failure to use EFAST2 approved software – Under the Department of Labor’s Final Rule on Annual Reporting and Disclosures, all Form 5500 Annual Returns/Reports must be filed electronically;
Failure to follow EFAST2 Electronic Filing Guidance and incorrectly entering the DOL user ID and PIN when signing the return;
Failure to attach all required schedules and attachments to the return before filing;
Failure to completely answer multiple part questions;
Failure to properly reference supplemental information and attachments; all required schedules and attachments must identify the name of the plan, plan sponsor’s name, sponsor’s Employer Identification Number (EIN), plan number (PN), plan year beginning and ending dates, and in the case of attachments, the type of attachment, associated schedule and the associated line number of that schedule;
Failure to use the proper EIN and Plan Number (PN);
Filing a final Form 5500 or Form 5500-SF as a “final return” report if the plan has assets, liabilities or participants at the end of the plan year;
Filing returns for a period of more than 12 months;
Failure to use a proper ”Business Code” that describes the nature of an employer’s business when completing Line 2d; Business codes may change from year to year and therefore, the business code used for your last year’s filing may not be a valid business code for the current year filing;
Failure to use the proper “Plan Characteristics” for employee benefits provided by the plan; you must enter all applicable codes that describe the type of pension and/or welfare benefits provided and other features of the plan;
Failure to run validation in vendor software before attempting to submit the return;
Failure to properly identify the Funding and Benefit Arrangements on Line 9; the responses are cross-referenced as edit check to certain schedules, as appropriate. If you think your Form 5500 filing may be at risk, contact 5500PrepPro for a Complimentary Return Review. We focus exclusively on employee benefit plan filings, compliance issues, ERISA laws and regulation changes.
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