Filing an Amended or Late Return under EFAST2
Part 24
In our continuing series of FAQs on EFAST2, we are addressing the issues and procedures with which 5500 preparers and plan sponsors will need to familiarize themselves to make the transition to electronic filing. One of the more difficult challenges in filing under EFAST2 is navigating the maze of rules and exceptions that apply to plan amendments and late filings. In the following FAQS, we discuss the various requirements for plan amendments and late filings, This discussion applies to plans other than “one-participant" plans eligible to file Form 5500-EZ. For more information on these plans, see EFAST2 – Part 23.
What filing options are available to file a Form 5500 for a 2008 plan year (including amended or late returns)?
For a plan that needs to file an annual return for 2008, the plan administrator has the following options:
- Through October 15, 2010, the plan administrator may file a paper version of the 2008 Form 5500 with the DOL in Lawrence, KS.
- Through June 30, 2010, the plan administrator may file the 2008 form electronically under the old EFAST system.
- The plan administrator may file electronically under EFAST2. After October 15, 2010, this will be the only available option. This Update (other than the immediately following question and answer) discusses the procedures for filing under EFAST2.
Comment: Any discussion of the 2008 plan year includes the 2008 calendar year and plan years which begin in 2008.
What procedures apply to paper 2008 Forms 5500?
The plan administrator should follow the 2008 instructions. This includes sending the returns to Lawrence, KS. For amended returns, the administrator includes only the schedules and attachments being modified. A timely or late-filed return would include all appropriate 2008 schedules, including Schedule SSA. To avoid problems, we strongly recommend filing paper returns in sufficient time that the DOL actually receives the return no later than Friday, October 15, 2010.
What filing options are available to file an amended or late Form 5500 for a pre-2008 plan year?
There is only one option available for plan years beginning before January 1, 2008. The plan administrator must file any amended or late filed return electronically under EFAST2.
When a plan administrator amends a pre-2009 return under EFAST2, must it include all of the schedules and attachments?
Generally, the employer must attach all of the schedules and attachments when amending a filing. However, in no event should an employer include Schedule SSA (or its soon-to-be released counterpart, Form 8955-SSA) with an amended return or any other filing under EFAST2.
What version of the Form 5500 must the plan sponsor use to amend a return or file a late return under EFAST2 for years before 2009.
The plan sponsor will use a current year Form 5500 (i.e., 2009) to file an amended or delinquent annual return for a pre-2009 plan year. The plan sponsor must insert the correct dates of the plan year on the first page of the Form 5500.
What version of the schedules must the plan administrator use in amending (or for filing a delinquent annual return for) a pre-2009 plan year filing?
The plan administrator would use current year schedules (i.e., 2009) to file an amended or delinquent annual return for a pre-2009 plan year with the following exceptions:
The plan administrator must use correct year (i.e.. the plan year for which the return is being filed) schedules for:
- Schedules B, SB, or MB (Actuarial)
- Schedule E (ESOP)
- Schedule P (Starts statute of limitations before 2006)
- Schedule R (Retirement plan information)
- Schedule T (Coverage, before 2005)
Comment: A plan administrator may use either the correct year version of the Schedule C or the current version. We anticipated that it will be extremely rare that an administrator would choose to use the current Schedule C because it requires much more work and calls for information the administrator would not readily have available.
This means that the employer uses the current year Schedules A, D, G, H and I.
How does the plan administrator file the correct year schedules electronically?
The plan administrator will complete the correct year schedules either by using software or by typing on a handprint form. Then the administrator will convert the schedules to PDF format and attach them to the electronic filing using “Other Attachment." In the case of a typed schedule, this will involve scanning the schedule.
If a plan administrator amends a plan that has been previously filed under EFAST2, must the plan administrator go through the signing ceremony again?
Yes.
When a plan administrator amends a filing that has been electronically filed under EFAST2, are there any special procedures?
Yes. The employer will enter the acknowledgement ID that it received with the previous filing. The acknowledgement ID will then become the reference acknowledgement ID and the filing will receive a new acknowledgement ID. Comment: The DOL uses this system to link the filings.
Will the new amended filing replace the previous filing on the DOL public disclosure website?
Yes.
If a plan administrator is amending a pre-2009 plan year filing under EFAST2, will it attach the Schedule SSA (now referred to as Form 8955-SSA) to its filing?
No. Since filings under EFAST2 are publicly disclosed on the DOL website, an EFAST2 filing (including an amended filing) will never include a Schedule SSA (or Form 8955-SSA). The employer will file the Schedule (or Form) with the IRS. At present, the plan administrator would file this at the IRS Ogden Service Center, the same location used for requesting extensions via Form 5558. Comment: The IRS has not issued Form 8955-SSA or its instructions.
May a plan use a Form 5500-SF to amend a pre-2009 filing?
No. A plan can never use Form 5500-SF to amend a pre-2009 filing, even if the plan would otherwise be eligible to file Form 5500-SF.
Schedule C samples
By far, the most significant change in the Form 5500 is the change to the Schedule C. Preparers universally agree on its complexity and the difficulty in determining the proper reporting of fees and expenses. In our Form 5500/EFAST2 Workshop, we will thoroughly explain the new Schedule C. As an added bonus to attendees, we will provide several sample completed Schedules C.
Form 5500 / EFAST2 – only 9 cities left - May
Mandatory electronic filing has garnered most of the attention when discussing the Form 5500. EFAST2 has overshadowed the many changes that the DOL has made to the Form 5500 and the accompanying schedules. In our Form 5500 Workshop, we will go through the Form 5500 and the Schedules on a line-by-line basis, focusing particular attention to the changes. Preparers need to understand both EFAST2 and the changes to the forms to avoid filing the same Form 5500 twice.
401(k) Plan Workshop – May
Prototype and volume submitter restatements for 401(k) plans, as well as emerging opportunities for growing Roth accounts should make 2010 a challenging year. Many employers are looking to address this year’s challenges by revisiting their plan designs and options. This workshop can help prepare you and your organization for these changes and more.
In many locations, the programs are offered back-to-back. Early registration and multi-program discounts are available. Visit our Web site now for links to additional details, dates/locations, online brochure, and to register online.