Form 5500 Electronic Filing—
The Only Way to File
Jim Griffin
214.953.5827
jgriffin@jw.com
Tye Andersen
512.236.2007
tandersen@jw.com
Overview
 Part I: Review of the Basics
 Part II: Form 5500 Revisions
 Part III: EFAST2
PART I
Review of the Basics
What is Form 5500?
 The Form 5500 annual return/report is
used to report information concerning
employee benefit plans to:
• IRS
• DOL
• PBGC
What employee benefit plans must
have a Form 5500?
 Every pension benefit plan
 Every welfare benefit plan
How many plans can be included
within each Form 5500?
 One Form 5500 is generally required for
each plan
Can several benefit arrangements be included
within one plan for Form 5500 filing purposes?
 Plan sponsors can offer benefits through various
structures and combinations
 Governing documents and actual operations
must be reviewed to determine whether welfare
benefits are being provided under a single plan
or separate plans
 Having separate insurance policies for each
different welfare benefit does not necessarily
mean that the employer has separate plans
What is a wrap plan?
 A document that incorporates various
benefits and insurance policies into one
comprehensive plan
What is a plan number and
how is it assigned?
 Plan numbers are self-assigned by the employer
 For pension benefit plans, start at 001 for the first plan
and then consecutively number other plans as 002, 003,
etc.
 For welfare benefit plans, start at 501 for the first plan
and then consecutively number other plans as 502, 503,
etc.
 Once you use a plan number for a plan, continue to use
it for that plan on all future filings with IRS, DOL and
PBGC
 Do not re-use a plan number even if the plan is
terminated.
What is the Form 5500 filing status of a
plan that covers employees of a parent
corporation and its subsidiaries?
 Multiemployer Plan—No
 Multiple-Employer Plan—No
 Single-Employer Plan--Yes
What are pension benefit plans?
 Profit sharing, stock bonus, money
purchase and 401(k) plans
 403(b) plans
 Defined benefit plans
 Cash balance plans
Are any pension benefit plans
excluded from filing Form 5500?
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Governmental plans
Church plans
SIMPLE plans funded with SIMPLE IRAs
SEP
Top hat plans that benefit a select group of
management or highly compensated
employees but only if a registration
statement is timely filed with DOL
What are welfare benefit plans?
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Medical
Dental
Life insurance
Apprenticeship and training
Scholarship funds
Severance pay
Disability
Are any welfare benefit plans
excluded from filing Form 5500?
 Welfare benefit plans that covered fewer
than 100 participants as of the beginning
of the plan year and are:
• Unfunded
• Fully insured
• A combination of insured and unfunded
 Governmental plans
 Church plans
What is the 80/120 rule?
 If the number of participants that is
reported on Line 6 of Form 5500 is
between 80 and 120, and a Form 5500
was filed for the prior plan year, the
employer may elect to complete the Form
5500 in the same category (“large plan” or
“small plan”) as was filed for the prior year
Form 5500.
When does an employee become
a participant?
 For welfare benefit plan purposes, an
employee becomes a participant on the
earlier of:
• The date specified in the plan document
• The date the individual becomes eligible for a
benefit, subject only to the occurrence of a
contingency for which the benefit is provided
• The date the individual makes a contribution
to the plan, whether voluntary or mandatory
What is an unfunded plan?
 Benefits are paid as needed directly from the
general assets of the employer that sponsors the
plan
 Plans that are not “unfunded”:
• Plans that receive employee contributions
• Plans that use a trust to hold plan assets
 Plans are “unfunded”:
• Plans with employee contributions that are associated
with a cafeteria plan
• Plans with COBRA premiums
Schedule A information
 If an insurance company refuses to provide
information for Schedule A, ER should report the
refusal on line 2a of the Schedule A
Administrative services only
(ASO) contract
 An ER should not file a Schedule A for an
ASO contract
 In a self-insured health plan, ERs often
contract with an insurance company to
process claims
 However, insurance company is acting as
a service provider and is not insuring the
benefits
Stop loss contracts
 ERs with self-insured welfare plans may
purchase stop loss policies to help them
manage the risk
 If premiums are paid out of the ER’s
general assets, the contracts are not
reported on Schedule A
Financial Schedules
I – Small Plans
H – Large Plans
When is the Form 5500 due?
 All required forms, schedules, statements
and attachments must be filed by the last
day of the 7th calendar month after the
end of the plan year that began in 2009
 July 31, 2010 for calendar year plans
 Next business day if the filing deadline is
on a Saturday, Sunday or Federal holiday;
August 2, 2010
What is the plan year?
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12 month period
Set out in plan document or SPD
Policy year
Calendar year
Can the due date of Form 5500
be extended?
 File Form 5558 before the Form 5500 filing
deadline to obtain an extension of up to 2
½ months
 October 15, 2010
 www.irs.gov
Are other extensions possible?
 An automatic extension of the Form 5500 filing
deadline will be granted until the due date of the
employer’s Federal income tax return if:
• The plan year and the employer’s tax year are the
same
• The employer has been granted an extension of time
to file its Federal income tax return
• A copy of the application for extension of the time to
file the Federal income tax return is attached to the
Form 5500
 September 15, 2010
Are there any more extensions?
 Special extensions under certain
circumstances
 Presidentially-declared disaster areas
What penalties apply if a
Form 5500 is filed late?
 $1,100 a day for each day that a plan administrator fails
or refuses to file a complete Form 5500
 $25 a day (up to $15,000) for not filing returns required
to be filed with IRS
 Willful violation of ERISA—fine of not more than
$100,000 or not more than 10 years in prison or both
 Making any false statement or representation of fact,
knowing it to be false, or for knowingly concealing or not
disclosing any fact required by ERISA—fine of not more
than $10,000 or 5 years prison or both
Audit not completed
 File 5500 timely
• With draft of audit or an explanation of why audit not
completed
 When completed, file amended 5500
 DOL may assess $50,000 penalty
Is there any way to reduce
the penalties?
 Delinquent Filer Voluntary Compliance
Program
http://www.dol.gov/ebsa/FAQs/faq_DFVC.html
What other penalties apply to
Form 5500?
 Under penalties of perjury and other penalties
set forth in the instructions, I declare that I have
examined this return/report, including
accompanying schedules, statements and
attachments, as well as the electronic version of
this return/report if it is being filed electronically,
and to the best of my knowledge and belief, it is
true, correct and complete.
Who is the Plan Administrator?
 The person specifically so designated by the
terms of the instrument under which the plan is
operated
 If an administrator is not so designated, the plan
sponsor
 In the case of a plan for which an administrator
is not designated and a plan sponsor cannot be
identified, such other person as the Secretary
may by regulation prescribe.
Fidelity Bond
 Every plan official who handles plan funds
must be covered under a fidelity bond
 Certain exemption for banks and
insurance companies
 Fiduciary liability insurance is not reported
on line 4e (Sch. H or I)
How long should I keep
previously filed Form 5500s?
 All plan-related materials should be kept for a
period of at least six years after the date of filing
of an ERISA-related return or report, and the
materials should be preserved in a manner and
format (electronic or otherwise) that permits
ready retrieval
 All records that support the plan’s annual
reporting and disclosure should be retained for
the same period of at least six years
PART II
Form 5500 Revisions
2009 Forms Revisions
 Facilitate move to fully electronic filing
system.
 Streamline and simplify small plan filing.
 Better disclosure on plan fees & expenses.
 Includes Pension Protection Act (PPA)
reporting changes first required in 2008.
New Form 5500-SF
 Two Page “Short Form” 5500 for Small plans (under 100
participants). Can use if:
• Exempt from annual audit requirement;
• 100% invested in secure investments that have a readily
determinable fair value;
• Hold no employer securities; and
• Not multiemployer plan.
 No Schedules required except DB plans required to file
actuarial schedule.
 NOTE: IRS giving many 5500-EZ filers choice of e-filing
5500-SF with EFAST or paper 5500-EZ with IRS.
Form 5500 Revisions
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IRS-only Schedules (E, SSA) removed to enable
mandatory e-filing.
Enhanced disclosures on plan fees & expenses.
Put 403(b) plans on par with 401(k) plans.
Better info on DB pension funding and
multiemployer plans (including PPA changes).
 Focused compliance questions added.
 Questions & instructions clarified/improved.
New Schedule C Reporting
 Identify each service provider who received
$5,000 or more in comp (direct & indirect).
 Includes new codes describing services & types
of compensation.
 Report total direct comp paid by plan separately
from total indirect comp received by provider.
 Prior rule requiring plan to identify only top “40”
highest paid service providers is eliminated.
Schedule C Guidance
 Two Sets of Frequently Asked Questions
available on EBSA website to help filers
apply the instructions
 Forms and instructions
 Preamble to Notice of Adoption of Final
Forms Revisions
Small Plan Fee and
Expense Reporting
 Schedule I filers not subject to Schedule C
indirect compensation reporting rules.
 Must break out fees on Schedule I paid directly
by plan to administrative service providers.
 Small plans filing Schedule A must still report
information on insurance fees and commissions.
 Short Form has questions on direct
compensation paid by plan and insurance fees &
commissions.
New Compliance & Technical
Questions
 Whether plan paid benefits when due.
 Whether plan complied with blackout
notice regulations.
 New feature codes for plans with
automatic enrollment or default investment
options.
 Standard supplemental schedule for
Schedule H reporting delinquent
participant contributions.
No EFAST Correspondence
Under New System
 Filers and service providers/submitters
should pay close attention to the EFAST2
automatically generated list of
errors/warnings.
 Filers will no longer receive post-filing
written correspondence from EFAST
requesting voluntary corrections of
errors/incomplete filings within 30 days.
5500-EZ
 Form 5500-EZ (paper return) must be filed by –
• Any one-participant plan, unless
 the plan is eligible to file and chooses to file Form
5500-SF electronically thru EFAST2, or
 the plan is not required to file a return because the
plan has assets (alone or in combination with the
employer’s other one-participant plans) of
$250,000 or less at the end of the PY and the
return is not for the final PY.
Form 5500-EZ
 One-participant plan means:
• Plan covers owner/owner & spouse and
owner/owner & spouse own entire business,
whether incorporated or unincorporated; or
• Plan covers one or more partners/partners
and spouses of a partnership.
• Plan does not provide benefits for anyone
except owner/owner & spouse or
partner(s)/partner(s) & spouse(s).
Form 5500-EZ
 One-participant plan is eligible to file Form
5500-SF electronically thru EFAST2 if:
• Plan is a one-participant plan as defined
earlier, and
• Plan covered fewer than 100 participants at
the beginning of the PY.
 One-participant plan filers of Form 5500SF complete only those parts of the form
that correspond to Form 5500-EZ.
Form 8955-SSA
 Schedule SSA (Form 5500) removed from
the Form 5500 series
 New, stand-alone 2009 form being
established
 Do not file with the Form 5500 using
EFAST2
Retain Paper Copy
 Plan administrators must maintain an
original of the Form 5500 with all required
signatures as part of their records
Extension of Time to File
 No longer required to attach a copy of
Form 5558
 Now, merely check the box on 5500, and if
applicable, enter a description of the
special extension
Form 5500
 One-participant plan may not file an annual
return on Form 5500 for 2009
 New plan characteristic codes have been added
to line 8
 Plan characteristic code 3E has been removed
 Code 3D will identify all pre-approved pension
plans for 2009
 Feature codes for certain types of plans have
been eliminated
Schedule A
 A new Part IV has been added for plan
administrators to report insurance
companies that fail or refuse to provide the
information necessary to complete
Schedule A
Schedule C
 On Schedule C, you must now report all
service providers who receive $5,000 or
more in direct or indirect compensation
Schedule H
 Line 2b(2)(C) has been added for
reporting dividends on registered
investment company shares (mutual fund)
Schedule H and I
 A new standardized schedule is now
provided for reporting delinquent
participant contributions on line 4a
 Line 4(l) has been added to report whether
the plan failed to provide any benefit when
due
 Lines 4(m) and 4(n) added to report a
blackout
PART III
EFAST2
Electronic Filing with EFAST2
 Two ways to create & submit filings:
• 3rd Party Certified Software
• IFILE (free web-based filing application)
 Combinations OK
 List of approved third party software is
posted at www.efast.dol.gov
Electronic Filing Mandate
 All Form 5500 and Form All Form 5500
and Form 5500-SF must be submitted
through EFAST2 except filings which have
a plan year begin date in 2008 may be
submitted on paper through EFAST.
 This includes plan year 2007 and prior
returns/reports. See EFAST2 FAQ #4.
EFAST2 Help
 EFAST2 website at www.efast.dol.gov
• FAQs
• Users guides
• Web-based tutorial
 Staffed help desk at 1-866-GO-EFAST
during business hours
 Third party software certification & support
Using EFAST2
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Register for credentials
Create a filing
Check the filing for errors
Sign the filing
Submit the filing and check the status
View filings on DOL website
Register for Credentials
 All plan sponsors & administrators must register
for credentials to sign filings (Filing Signer role)
 Anyone wishing to fill out the forms/schedules
through IFILE must register for credentials to
author (Filing Author or Schedule Author role)
 Anyone wishing to transmit completed filings
through third party software MAY need to
register for credentials (Transmitter role)
 Actuaries and accountants do not need to
register but may do so if they wish
 You can not use EFAST credentials for EFAST2
Summary of Steps to Register
Go to www.efast.dol.gov and click “Register”
Enter contact information and select role
Follow the screens
Check your email (and spam folder) for a
message from EFAST2
 Click on the link in the EFAST2 message to
complete your registration
 Keep track of your UserID and password
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Register – 1st Screen
Register – 2nd Screen
Register – 2nd Screen
(Continued)
Register – 3rd Screen
Register - Email
Register - Verification
Register – PIN Agreement
Register – Signature Agreement
Register - Final
Registration Tips
 Use your business email address when registering,
rather than your personal address.
 Check your spam folder if you do not receive the
EFAST2 email within 5 minutes.
 You can change your addresses (including email), phone
number, PIN, Password, and roles at any time. Just login
to the website and click “User Profile”.
 You can not modify the UserID or secret knowledge
(place or date of birth). This may change in the future.
 Your Personal Identification Number (PIN) is personal
and not to be shared.
Create a Filing
 IFILE is a free, optional, ‘no-frills’ web
based filing application available on the
EFAST website
 Approved third party software should
provide filers with added value
 Must obtain “Filing Author” credentials
before creating a filing in IFILE
Summary of Steps to Create a
Filing in IFILE
 Go to www.efast.dol.gov portal and click “Login”
 Click “Create a Filing”
 Select the form year & type you want to
complete
 Provide a name for your filing (only for your use,
does not get sent to Gov’t)
 Complete the form
 Add schedules and attachments as needed
 Validate the filing to see if there are errors
IFILE - Homepage
Create a Filing – Form 5500
IFILE Workspace
Add Attachment
Validating a Filing
Validating a Filing – List of
Errors
Filing Creation Tips
 You can view or print the filing at any time to see it in the
“forms”.
 Follow the forms instructions, consider printing these out
before you start.
 Don’t forget to Validate and correct errors.
 Call the help desk if you need assistance.
 You don’t need to include the Form 5558 extension as
an attachment in your filing.
 NEVER include Schedule SSA, Form 8955-SSA, or
social security number in your EFAST2 filing.
 Don’t scan paper unless you must to minimize the filing
size.
Sign the Filing
 Signatures can be applied through
approved third party software or IFILE.
 Needed signatures are specified in Form
5500 and 5500-SF instructions.
 Signatures in EFAST2 mean UserID and
PIN.
 One process for signing filings in iFile; one
size fits all.
Summary of Steps to Sign a
Filing in IFILE
 Associate Signers
• Open/Import a filing in iFile
• Click associate signers
• Enter one or more registered filing signer’s email
address
 Apply Signature
• Signer opens the filing in iFile and reviews the filing
• Click sign filing
• Enter UserID & PIN and select signature line
Associating a Signer
Specifying Registered Signer(s)
Signer(s) E-mail Notification
Signer Summary (Notification)
Sign Button
Signature Legal Language
Application of Signature
Signature Tips
 Individuals must have registered as signers before you
can associate them to a filing and email address must
match in IFILE.
 If a required signature is missing you will receive a
message AFTER you submit the filing – it won’t show up
in the Validation check before you submit.
 If the plan administrator signature is missing or incorrect,
you will get a “STOP” message when you submit your
filing.
 If plan administrator is same as plan sponsor, that
person only needs to register once and apply their
signature to the plan administrator “line”.
Submitting a Filing
 EFAST2 automatically receives and tests filing
submissions. 100MB is the current file size limit.
 Filers will see an initial list of errors/warnings if they
validate before submission.
 Filers should receive an acknowledgment ID after
submitting.
 Filers must check the status of their filing and final
errors/warnings after receiving the acknowledgement ID.
 Filing status that includes the word “unprocessable”
means we did not receive a filing from you. See EFAST2
FAQ #38.
 In IFILE, only the author can submit filings.
Summary of Steps to Submit a
Filing in IFILE
 Open the signed filing in iFile.
 Click Submit.
 Click OK in the Acknowledgement popup
window.
 In the left hand navigation bar, click
Submissions.
 See the Status of the filing you submitted (click if
possible) to ensure EFAST2 received and could
process what you sent.
Ready for Submission
Submitting a Filing
List of Submitted Filings
Submitting Filing Tips
 Check the filing status and list of errors
after you submit (may differ from the prevalidation you did before you submitted).
 If you are amending or want to make a
copy of a filing, use the “amend” button in
the submission list window.
General Consideration when
Using EFAST
 It’s a first-year Internet-based web application,
it’s not bullet-proof.
• If your Internet connection is fast, you will have a
better experience.
• If you click something and it doesn’t do what you
expect or your screen freezes, close your browser
and try it again.
 Don’t get frustrated, help is available.
• Use the information and guides on our website.
• Call the help desk (1-866-463-3278) 8:00 a.m. to 8:00
p.m., Eastern Time, Monday through Friday, except
for federal holidays.