Flexible Benefits
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Form 5500 – Electronic Filing
IRS Form 5500
Until April 2002, Cafeteria Plans were required to file Form 5500 Notice 2002-24 suspended the filing requirement for fringe
benefit plans
A Cafeteria Plan is a fringe benefit plan
The dependent care and adoption benefit is a fringe benefit plan and does not require a filing
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and does not require a filing
Health FSA and HRA are welfare benefit plans and generally must file Form 5500 under ERISA
Form 5500 - Overview
Who must file?
All welfare benefit plans with 100 or more participants at the beginning of the plan year that are unfunded and/or fully insured.
A participant is an employee who is enrolled in the HRA or Health FSA.
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“Unfunded” means that the benefits from the plan are paid directly from the general assets of the employer. “Funded” means that assets held in a trust or a separately
maintained account.
“Fully insured” means that the benefits are paid through insurance contracts or policies.
Form 5500 - Overview
Who must file? (cont.)
Welfare benefit plans where the plan assets are held in a trust or separately maintained account.
Must file regardless of number of participants
Health insurance plans with more than 100 participants must file
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participants must file.
Include Schedule A
Form 5500 - Overview
Exceptions to the filing requirement
All welfare benefit plans with fewer than 100 participants at the beginning of the plan year and is unfunded and/or fully insured.
A governmental plan
A h h l d ERISA ti 3(33)
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Form 5500 - Overview
80-120 Participant Rule:
If the number of participants reported on line 5 is between 80 and 120, and a Form 5500 annual return/report was filed for the prior plan year, you may elect to complete the return/report in the same category (‘‘large plan’’ or ‘‘small plan’’) as was filed for the prior return/report.
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plan ) as was filed for the prior return/report. This exception is for pension plans.
Form 5500 - Overview
Determine which employers must file
Send initial employer letter (email)
Gather information used to fill out Form 5500
Complete Form 5500 (generally done with
third-t
ft
)
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party software)
Complete any applicable Form 5500 Schedules
Verify information on Form 5500
Send signing invitation to employer
Tracking work flow
Initial Employer Notification
Initial letter to plan sponsor/administrator
New requirements
Detailed instructions to obtain signing credentials How/when TPA will contact when Form 5500 is complete How to print, e-sign and submit filing to the DOL
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Requirement to print Form 5500, place a “wet” signature on form and retain in their files
Form 5500 – Prerequisites
Gather information needed to complete the
Form 5500
Previous Form 5500 filing, unless this is the first filing for this plan (this information may be obtained through the Form 5500 software or at FreeERISA.com). Pl d t if thi i th fi t fili f thi l
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Plan document, if this is the first filing for this plan Simplified Form 5500 instructions.
The number of participants at the beginning and end of the plan year.
Name and email address for employer signer(s).
Form 5500 Instructions
Use these instructions for an HRA or a Health
FSA plan that has more than 100 participants
at the beginning of the plan year
Complete the Form 5500 with the “2010” printed in the upper right corner for a plan year that began in 2010, i l di th i t bl k
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including the signature block.
Part I – Enter the plan year beginning and ending date. Part I, A – Check the box which indicates the type of
plan entity (do not check more than one box).
Form 5500 Instructions
Multi-employer plan
A plan is a multi-employer plan if:
1. more than one employer is required to contribute, 2. the plan is maintained pursuant to one or more collective
bargaining agreements, and
3. an election under Code section 414(f)(5) and ERISA section
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Form 5500 Instructions
Single-employer plan (Other than a
multiple-employer plan)
A single-employer plan is an employee benefit plan maintained by one employer or one employee organization. Most employers will select “Single-employer plan ”
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employer plan.
Multiple-employer plan
A multiple-employer plan is a plan that is maintained by more than one employer and is not one of the plans already described. Do not check this box if the employers maintaining the plan are members of the same controlled group.
Form 5500 Instructions
DFE (specify) and enter the correct letter
to indicate the type of entity.
NOTE: A "controlled group" is generally
considered one employer for Form 5500
purposes, and would usually check
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y
“Single-employer plan.”
Form 5500 Instructions
Part I, B – Check the box(es) which indicate if this filing is:
1. First return filed for this plan.
2. Already filed for this plan year submitting an amended return.
• Do not mark this as an amended return if your previous submission attempts were not successfully received by EFAST2 because of transmission problems.
3 Plan no longer exists and this is the final return
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3. Plan no longer exists, and this is the final return.
• Do not check final return/report here if “4R” is entered on line 8b. “4R” is an unfunded, fully insured, or combination unfunded/fully insured welfare plan that is not terminated, but will not file an annual report for the next plan year pursuant to 20 CFR 2520.04-20. 2520.04-20 refers to plans that have fewer than 100 participants at the beginning of the plan year.
Form 5500 Instructions
Part I, B (cont.)
1. Return is being filed for a plan of less than 12 months.
Part I, C – Check this box if the benefits paid are subject to the collective bargaining process (even if only some of the employees covered by the plan are members of a collective bargaining unit).
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Part I, D – Check the box which indicates the type of extension utilized or a DVC program filing:
An extension of time was filed. Maintain a copy of the signed Form 5558 “Application for Extension of Time to File Certain Employee Plan Returns” that was filed.
A special extension was afforded the plan through the IRS, DOL and PBGC. Enter description.
Form 5500 Instructions
Part I, D (cont.)
An automatic extension was utilized for this plan. Maintain a copy of the employer’s extension of time to file their federal income tax return.
This filing is under DOL’s Delinquent Filer Voluntary Compliance (DFVC) Program.
P t II 1 E t th f l f th l
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Part II, 1a – Enter the formal name of the plan. Part II, 1b – Enter the three-digit number assigned to
the plan. All welfare or fringe benefit plan numbers start at 501.
Part II, 1c – Enter the date the plan first became effective.
Form 5500 Instructions
Part II, 2a – Enter the name and address of the sponsor. This would be the employer's name if this return is for a single-employer plan.
Part II, 2b – Enter the nine-digit Employer ID number assigned to the plan sponsor. Part II 2c – Enter the sponsor's phone number
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Part II, 2c Enter the sponsor s phone number. Part II, 2d – Enter the six-digit business code that best
Form 5500 Instructions
Sign Here – Enter the name of the individual signing as plan administrator.
Sign Here – The name of the individual signing as employer plan sponsor or DFE. Generally for a Health FSA or HRA filing, only the plan administrator needs to sign the Form 5500.
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Part II, 3a – Enter the name and address of the plan administrator. Usually the administrator is the sponsor even if someone else is doing the bookkeeping. You may no longer enter “Same” in this field.
Part II, 3b – Enter the administrator's EIN. Field must contain the administrator’s EIN.
Form 5500 Instructions
Part II, 3c – Enter phone number of administrator. Field must contain the administrator’s phone number. Part II, 4 – If name and/or EIN of the plan sponsor is
different than last return.
4a – Enter the sponsor's name from the last return/report 4b – Sponsor's EIN from the last return/report
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4b Sponsor s EIN from the last return/report 4c – Plan number from the last return/report
Part II, 5 – Enter the total number of participants in the Health FSA portion of the cafeteria plan or HRA as of the first day of the plan year.
Form 5500 Instructions
Part II, 6a – Enter the total number of participants in the Health FSA portion of the cafeteria plan or HRA as of the end of the plan year. Enter 0 (zero) if you marked Line B of Part I as a final return/report.
Part II, 6b – Enter the number of retired or separated participants receiving benefits as of the end of the plan
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year. Enter 0 (zero) if you marked Line B of Part I as a final return/report.
Form 5500 Instructions
Part II, 6d – Enter total of lines 6a, 6b and 6c and proceed to line 8. Enter 0 (zero) if you marked Line B of Part I as a final return/report.
Part II, 8b –
Enter the Characteristic Code of “4A” (to indicate you are filing for a health plan that is other than dental or vision).
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Also enter “4R” if the plan is not terminated but will not be filing a Form 5500 next year because there are fewer than 100 participants as of the beginning of the next plan year.
OR
Also enter “4S” if the plan stopped filing in an earlier year because there were fewer than 100 participants, but now has 100 or more participants in this plan year and is now required to file.
Form 5500 Instructions
You may enter more than one code under 8b.
Part II, 9a 9b – Check all boxes that apply to indicate the funding and benefit arrangements used during the plan year. Generally the funding and benefit arrangements for a Section 125 Cafeteria Plan or HRA are “General assets of the sponsor.” Check your plan document for specific
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funding and benefit arrangements.
Part II, 10a 10b – Generally, no schedules are attached to a Form 5500 filed for a welfare benefit plan where the plan benefits are paid from the general assets of the employer.
Form 5500 Instructions
The instructions have been modified to make it clear that those plans that would not have to complete the Schedule H because they meet the conditions of the limited exemption under 29 CFR 2520.104-44 or Technical Release 92-01, are also not required to complete and file a Schedule C to report information
i id ti CFR 2520
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Form 5500 Instructions
Most non-exempt employer plans will complete all
the questions on the Form 5500 including 5, 6a
through 6d, 8b, and 9a and 9b. Complete 10 only
if Schedules will be attached.
Depending on the funding arrangement or
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payments from the plan, attaching Schedules
may be applicable.
General Processing Tips
If the current year Form 5500 is not available before
the due date of a short plan year return/report, use
the latest Form 5500 available and enter the dates
the short plan year began and ended in Part I.
A separate Form 5500, with box A(2) checked, must
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p
,
( )
,
be filed by each employer participating in a plan or
program of benefits in which the funds attributable to
each employer are available to pay benefits only for
that employer’s employees, even if the plan is
maintained by a controlled group.
Form 5500
Beginning with the 2009 plan year, the Form 5500
will be required to be filed electronically
Begin filing on January 1, 2010
Private web-based systems
A third-party application that can transmit
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A third party application that can transmit to the DOL via the Internet
Application for Extension of Time
Form 5558 on IRS website at:
http://www.irs.gov/pub/irs-pdf/f5558.pdf
This is a fill-in-the-blank PDF form
2-1/2 month extension of time to file Form 5500
(page 7-42)
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)
Must be filed by original deadline for filing
Form 5500
Mailed to IRS Service Center in Ogden, UT
Do not attach to electronic filing
Form 5558
Plan administrator must keep a copy with the
plan’s records.
The preparer may obtain an extension under
Form 5558 without the employer’s signature.
Indicators on Form 5500 of what type of extension
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Indicators on Form 5500 of what type of extension
was used for the filing.
Form 5558 Automatic Extension The DFVC Program
Special extension (enter description)
2008 or Amended Forms
Prior to 2009
Use the current electronic version with the appropriate dates that the filing covers.
2008 filings – through EFAST on paper until October 15, 2010 or electronically until June 30, 2010 under EFAST, not EFAST2.
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After October 15, 2010 timely paper filings will no longer be accepted for 2008 plan years.
2009 and later
Amended Forms
Prior year return to amend?
Have to submit entire form, etc. electronically.
Amended filing that has been filed electronically
under EFAST2
The employer will enter the acknowledgement ID that it
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The employer will enter the acknowledgement ID that it received with the previous filing. The acknowledgment ID will then become the reference acknowledgement ID and the filing will receive a new Acknowledgment ID.
Delinquent Filer Voluntary Compliance Program
Effective March 29, 2011, the address for the
Delinquent Filer Voluntary Compliance Program
(DFVCP) lockbox will change to: DFVC DOL,
PO Box 71361, Philadelphia, PA 19176-1361.
There is no overnight delivery address. Note that
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submissions to the DFVCP also can be done
electronically. To do so, follow the DFVCP penalty
calculator instructions for online payment.
Schedules
Schedule A – provided by the insurer
Used for fully-insured health plans. Not to be filed for the Health FSA or HRA plans
Schedule C
The instructions have been modified to make it clear that those plans that would not have to complete the Schedule H because
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Schedules
More details are contained in the IRS
“2010 Instructions for Form 5500”
You can find the instructions at:
http://www.dol.gov/ebsa/pdf/2010-5500inst.pdf
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PINs and IDs
Filing Author
Filing Authors can complete Form 5500/5500-SF and the accompanying schedules, submit the filing and check filing status. Filing Authors cannot sign filings unless they also have the “Filing Signer” role. If you are using EFAST2-approved third-party software, they do not need credentials.
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Filing Signer
Plan administrator, plan sponsor and direct filing entity. Plan administrator and plan sponsor may be same or
different person, but cannot share same PIN and ID. The plan administrator remains legally responsible for the
timeliness of the submission of the Form 5500 by a transmitter.
PINs and ID
Transmitter
Transmit Form 5500/5500-SF filings to the EFAST2 system for processing on behalf of others. Transmitters are responsible for the security of all
filing information prior to and during its transmission. A Transmitter can be a company, trade, business, or i di id l
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individual.
PINs and IDs
Sharing credentials
DOL issued warning after warning about sharing of credentials. In May received a work around for employers not getting their
signing credentials for completing the e-sign and filing requirements.
New e signature option for Form 5500/5500 SF
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New e-signature option for Form 5500/5500-SF
electronic filing
TPAs may obtain their own signing credentials and submit for the plan.
Must have written authorization from the plan administrator. The employer/administrator must manually sign a paper copy
of the completed filing.
PINs and IDs
TPA attaches PDF copy of the first two pages of the manually signed form as an attachment to the electronic filing submitted to EFAST2.
TPA must communicate any queries surrounding the form or submission to the plan administrator.
TPA must advise the plan administrator/employer that the 38
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TPA must advise the plan administrator/employer that the image of their signature will be visible on the publically posted filing.
Public View
Filings are made available to the public
immediately upon filing
Submission and Filing
If modifications are made to the form after entering
the electronic signature and before the transmission,
the signatures would be voided and the employer
would have to e-sign again.
An Acknowledgement ID means EFAST2 received
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and electronic “envelope” but is does not necessarily
mean EFAST2 received the “filing.”
Approximately 20 minutes after submission, the
transmitter or the signer(s) can check the filing
status using the software used to submit.
Submission and Filing
Check the filing status through your Form 5500
software or EFAST2 to ensure that the filing was
received.
Provider may have signers review, print and “sign”
within the software system. Others may invite the
signers to a “signing ceremony” online at EFAST2
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signers to a signing ceremony online at EFAST2.
Employer must print and “wet” sign a copy of the
Form 5500 and keep the signed copy for their
records. This completes the filing.
Size of the file being sent must not be bigger than
100 MBs.
Filing at the Last Minute
It will take approximately 90 seconds to find out
whether the return is processed.
DOL treats a return as filed when it issues a status
of “filing stopped,” “filing error,” or “filing received.”
Print the unsuccessful transmission notice and
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include the notice as an “other attachment.” With
the resubmission of the return as a PDF. Facts and
circumstances determine whether the filing will be
considered timely.
Other Tips and Tricks
Plan administrators, not plan sponsor’s address on
line 3a indicates time zone.
Line 3a – “If same as plan sponsor, enter “Same.”
No longer applicable fill in 3a, 3b, and 3c with full information
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All electronic filings available to the public within
one day at: www.efast.dol.gov. You do not need
signing credentials to view these.
Consider turning off pop-up blockers for
acknow-ledgements or other messages from EFAST2.
Other Tips and Tricks
Plan signers – can use same credentials for both
pension and welfare filings.
PIN and ID for EFAST? You need a new PIN and
ID for EFAST2.
Need: Internet connection creating PDF scanner
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Need: Internet connection, creating PDF, scanner
for forms you might receive in paper format.
Other Tips and Tricks
Want to look at a blank Form? 2010 form and
schedules are not available on the IRS website.
Available on DOL website at:
http://www.dol.gov/ebsa/pdf/2010-5500.pdf
2010 Form 5500 instructions:
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Previous Form 5500 Filings
To find 2009 and 2010 filings:
http://www.efast.dol.gov/portal/app/disseminate?exe
cution=e1s1
Filings prior to 2009:
http://freeerisa.benefitspro.com/
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Need Help?
http://www.efast.dol.gov/welcome.html
EFAST2 Help Line 866-463-3278
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