Client Alerts
EFAST II.
For plan years beginning on or after January 1, 2009, the Form 5500 and its schedules must be filed electronically under the computerized ERISA Filing Acceptance System (EFAST2).
The Form 5500 may be electronically signed by the plan administrator. For instructions on how to obtain an electronic signature, please click here. Or, in lieu of the plan administrator’s electronic signature the Department of Labor (DOL) announced on May 13, 2010 that service providers such as LGT Retirement Plan Solutions may submit returns on behalf of clients. Please click here for the DOL news release. Click here for the EFAST 2 FAQs.
The plan administrator must keep a copy of the Form 5500, with all schedules and attachments, with all the required signatures on file as part of the plan’s records.
Safe Harbor for Small Plans Announced.
On January 14, 2010 the DOL announced final regulations providing for a safe harbor rule for the timely remittance of employee contributions and loan payments. The safe harbor period is seven business days following the day the contributions or loan payments are deducted from an employee’s pay.
The safe harbor applies to plans with fewer than 100 participants, otherwise known as small plans. Large plans will remain under current rules, which will most likely be subject to faster deposit requirements.
Dates You Need to Know
401(k) PLAN CHECK LIST
I.R.S. 401(k) QUESTIONNAIRE.
The I.R.S. announced on May 17th that it would be sending out a 401(k) Compliance Checklist Questionnaire to 1,200 employers/plan sponsors.
According to the Service: The information gathered from the Questionnaire will provide a comprehensive view of 401(k) plans and will help maximize its resources for education, outreach, guidance and enforcement efforts while minimizing the burden to compliant plan sponsors.
For more information click here to see the I.R.S. May, 2010 special edition of the Employee Plan News.
To review the complete Questionnaire, Please click here.
Should you receive a Questionnaire, please contact us for help in completing it.
