Information about http://www.dol.gov/ebsa/pdf/troubleshootersguide_pt1.pdf
Troubleshooter's Guide to Filing the ERISA Annual Report (Form 5500) U…
Tags: applicable regulations, employee retirement income, employee retirement income security, enforcement fairness act, form 5500, fringe benefit, income security act, introduction 1, legal interpretation, pension and welfare benefits administration, pwba, regulatory enforcement, request voice, retirement income security, small entity compliance guide, troubleshooter, u s department, u s department of labor, voice phone, welfare benefits,Pages: 25
Language: english
Created: Fri May 31 16:42:29 2002
Display cached document
Page 1
Page 2
Page 3
Page 4
Page 5
Page 6
Page 7
Page 8
Page 9
Page 10
Page 11
Page 12
Page 13
Page 14
Page 15
Page 16
Page 17
Page 18
Page 19
Page 20
Page 21
Page 22
Page 23
Page 24
Page 25
Troubleshooter's Guide to
Filing the ERISA Annual Report
(Form 5500)
U.S. Department of Labor
Pension and Welfare Benefits Administration
This publication has been developed by the U.S. Department of Labor,
Pension and Welfare Benefits Administration. It provides only general
guidance. Not all rules or requirements are reflected. See the instructions
to the Form 5500 and applicable regulations for detailed information. The
contents of this document are not a legal interpretation of the Employee
Retirement Income Security Act.
This publication is available on the Internet at:
www.doI.gov/pwba
For a complete list of the agency's publications, call toll-free:
1-866-275-7922
This material will be made available in alternate format upon request:
Voice phone: (202) 693-8664
TTY: (202) 501-3911
This publication constitutes a small entity compliance guide for purposes
of the Small Business Regulatory Enforcement Fairness Act of 1996.
Troubleshooter's Guide to
Filing the ERISA Annual Report
(Form 5500)
U.S. Department of Labor
Pension and Welfare Benefits Administration
June 2002
TABLE OF CONTENTS
INTRODUCTION .................................................................... 1 CHECKLISTS and QUICK REFERENCE CHARTS ......... 13
· Checklist - Large and Small Pension Plans .............................. 14
FORM 5500 ............................................................................ 3 · Checklist - Large and Small Welfare Plans .............................. 16
· Form 5500 Reporting ............................................................ 3 · Checklist - Fringe Benefit Plans .............................................. 17
· Schedules and Attachments ................................................... 4 · Checklist - Direct Filing Entities (DFEs).................................. 18
· Large and Small Pension Plan Quick Reference Chart .............. 20
EFAST PROCESSING OF THE FORM 5500 ..................... 7 · Large and Small Welfare Plan Quick Reference Chart .............. 22
· Edit Testing ........................................................................... 7 · DFE Quick Reference Chart.................................................... 23
· EFAST Processing Tips ........................................................... 8
· Correspondence to Plan Administrators .................................. 8 GENERAL GUIDELINES FOR COMPLETING
FORM 5500 AND SCHEDULES A, C, D, G, H AND I ....... 25
POTENTIAL FILING ERRORS AND HOW TO · Guidelines for Completing Form 5500 .................................. 26
AVOID THEM .......................................................................... 9 · Guidelines for Completing Schedule A .................................. 33
· Guidelines for Completing Schedule C .................................. 36
COMPLIANCE/PENALTY SANCTIONS ............................. 10 · Guidelines for Completing Schedule D .................................. 37
· Voluntary Compliance ............................................................ 10 · Guidelines for Completing Schedule G .................................. 38
· Civil Penalty Sanctions ........................................................... 10 · Guidelines for Completing Schedule H .................................. 39
· Guidelines for Completing Schedule I ................................... 44
WHERE TO FILE THE FORM 5500 ..................................... 11
GENERAL GUIDELINES FOR COMPLETING
OTHER FORM 5500 SCHEDULES ..................................... 47
INTRODUCTION
The U. S. Department of Labor's (DOL) Pension and Welfare PWBA's EFAST Contact Center has made available a toll-free
Benefits Administration (PWBA), in conjunction with the Internal telephone number, 1-866-463-3278, to provide a variety of
Revenue Service (IRS) and the Pension Benefit Guaranty assistance to filer's. This toll-free service is available Monday
Corporation (PBGC), publishes the 5500 Annual Return/Report through Friday from 8:00 a.m. to 8:00 p.m. Eastern Time and
forms to be used by plan administrators in satisfaction of their may be utilized by individuals:
annual reporting obligations under the Employee Retirement with questions about completing the Form 5500 or
Income Security Act of 1974 (ERISA) and the Internal Revenue 5500-EZ;
Code (the Code). who need assistance in responding to correspondence from
PWBA about EFAST processing of their Form 5500 or 5500-
The forms and requirements discussed in this guide reflect the EZ filing;
reporting system for annual reports required to be filed and who want to confirm the receipt of forms that were
processed under the ERISA Filing Acceptance System submitted; and
(EFAST). The information included in these filings will be with general questions about EFAST.
carefully reviewed for compliance with ERISA's reporting Callers may also utilize PWBA's toll-free number to access the
provisions and utilized to upgrade DOL's database of information IRS and the PBGC. You may also check the EFAST Web page at
for enforcement, compliance, research and other program needs. www.efast.dol.gov for information about the Form 5500 or
5500-EZ.
In an effort to assist filers in the preparation of the Form 5500
(including accompanying schedules, statements and This publication, together with the instructions for preparing the
attachments), DOL has prepared this publication which focuses 2001 Form 5500, is intended to assist filers in complying with
on the changes in reporting under EFAST and how to avoid the annual reporting requirements. It provides only general
reporting errors most likely to be made by filers. Although guidance. Not all rules or requirements are reflected. See the
EFAST processes the IRS Form 5500-EZ, Annual Return of One- instructions to the Form 5500 and applicable regulations for
Participant (Owners and Their Spouses) Retirement Plan, this detailed information. The contents of this document are not a
guide does not cover the Form 5500-EZ. legal interpretation of ERISA. Unless otherwise specified,
"instructions" when used in this publication refers to the 2001
Instructions for Form 5500.
Troubleshooter's Guide - 1
FORM 5500
ERISA generally requires the administrator of an employee was filed for the prior return/report. Use the number of
benefit plan to submit an annual report (the Form 5500, participants required to be entered in line 6 of the Form 5500 to
accompanying schedules, statements and attachments), which determine whether a plan is a "small plan" or "large plan." For
contains information on the characteristics and financial more information, see the 2001 Form 5500 instructions under
operations of the plan. the heading "What to File," and Schedules and Attachments
on page 4, and CHECKLISTS and QUICK REFERENCE CHARTS
The Form 5500 is required to be filed with PWBA under EFAST. on page 13.
PWBA processes the reports received under EFAST, provides
information from the reports to the IRS and PBGC for use in The Form 5500 for plans and Group Insurance Arrangements
enforcement and other program activities, and provides copies (GIAs) is generally due by the last day of the seventh month after
for disclosure to the public. Previously, the Form 5500 was filed the end of the plan year. See GUIDELINES FOR COMPLETING
with the IRS. FORM 5500, line D, for information on extensions of time to file.
The Form 5500 annual return/report of employee benefit plan The Form 5500 for all other Direct Filing Entities (DFEs - which
consists of the main Form 5500, which includes basic identifying are discussed below in the section Changes for Form 5500
information; and, depending upon the type of filer, one or more of Reporting) other than GIAs is due no later than nine and one-
13 schedules that focus on particular subject matter or filing half months after the end of the DFE year.
requirements, and supplemental documents or materials that
may also be required to be attached. See Schedules and Form 5500 Reporting
Attachments on page 4.
The 2001 Form 5500 has not been substantially changed from
Generally, a return/report filed for a pension benefit plan or the 2000 version of the Form 5500. The 2001 Form 5500
welfare benefit plan that covered fewer than 100 participants as maintains the substantial revisions adopted for the 1999 Form
of the beginning of the plan year should be completed following 5500 in which one Form 5500, intended to streamline the report
the requirements for a "small plan," and a return/report filed for and the methods by which it is filed and processed, replaced the
a plan that covered 100 or more participants as of the beginning 1998 Form 5500, Form 5500-C and Form 5500-R. A summary
of the plan year should be completed following the requirements of certain important changes in Form 5500 requirements for
for a "large plan." Under the "80-120 Participant Rule," if 2001 appears in the instructions under the heading "Changes
the number of participants as of the beginning of the plan year is To Note For 2001." Filers should carefully read the instructions
between 80 and 120, and a Form 5500 was filed for the prior to the 2001 Form 5500 for complete information on 2001 filing
plan year, you may elect to complete the Form 5500 and requirements.
schedules in the same category ("large plan" or "small plan") as
Troubleshooter's Guide - 3
Following is a summary overview of certain key Form 5500 filing Filing Form 5500 for a Direct Filing Entity (DFE).
requirements under the EFAST system. Information on certain investment and insurance
arrangements is reported by plans and filed directly with the
Different formats and methods of filing the Form DOL. These investment and insurance arrangements include
5500. The Form 5500 permits the filer to choose between master trust investment accounts (MTIAs), common/
two formats. One format, "machine print," requires collective trusts (CCTs), pooled separate accounts (PSAs),
completion by computer software from EFAST approved 103-12 investment entities (103-12 IEs) and GIAs.
vendors. The other format, "hand print," permits Beginning with the 1999 Form 5500, standardized forms,
completion by typewriter, by hand or by computer software including the Form 5500 and new Schedule D, must be used
from EFAST approved vendors. to report information submitted for these investment and
insurance arrangements. A Form 5500 must be filed in
Filing the handprint Form 5500. Hand print forms accordance with the instructions for each MTIA or the
enable filers to complete the forms by hand or typewriter or, participating plan's annual report will be deemed incomplete.
for the 2000 Form 5500, by computer software from EFAST A Form 5500 is not required to be filed for a CCT, PSA, 103-
approved vendors. The hand print form is published with a 12 IE or GIA. However, plans that participate in CCTs, PSAs,
preprinted bar code at the bottom of each page, and the form 103-12 IEs or GIAs that file as DFEs are entitled to certain
and all required attachments must be filed by mail. Hand annual reporting relief. GIAs that filed pre-1999 Form 5500's
print forms cannot be filed electronically. Individual hand with the IRS now file Form 5500's with PWBA. An MTIA,
print forms can be ordered by calling 1-800-TAX-FORM CCT, PSA, 103-12 IE or GIA for which a Form 5500 has been
(1-800-829-3676). filed in accordance with the instructions is known as a
Direct Filing Entity or DFE.
Filing the machine print Form 5500. Machine print
forms are generated by approved EFAST computer software. Schedules and Attachments
The machine print form and all required attachments may be
filed in several ways: (1) by modem, using an approved Required schedules and attachments must be clearly labeled in
EFAST Transmitter; (2) by mailing magnetic tape, floppy accordance with the instructions and attached to the Form 5500
diskettes or CD-ROMs, containing the Form 5500 data; or (3) or the filing is subject to rejection as incomplete and penalties
by mailing a paper version of the machine print form. Check may be assessed. All schedules and attachments must identify
the EFAST Web page at www.efast.dol.gov for the latest the name of the plan or DFE, sponsor's Employer Identification
information about the above requirements. Number (EIN), plan number (PN), type of attachment, associated
schedule and the line number of that schedule. When
Filing With PWBA. All Forms 5500 should be sent to assembling the package for filing, attachments to a schedule may
PWBA either by modem, mail, or approved private delivery be placed either directly behind that schedule or at the end of the
services. filing.
Troubleshooter's Guide - 4
Schedule A (Insurance Information). The Schedule A must be Form 5500 to satisfy Code section 6039D, including for years
filed by plans and certain DFEs when benefits under the plan are prior to 2001 for which an annual information return has not
provided by an insurance company, insurance service or other been filed. Any future reporting obligations under Code section
similar organization (including, for example, Blue Cross, Blue 6039D will apply only to plan years beginning on or after the
Shield or a health maintenance organization). This includes date of publication of further guidance from the IRS.
investment and annuity contracts with insurance companies.
Schedule G (Financial Transaction Schedules). The Schedule G
Schedule B (Actuarial Information). The Schedule B must be must be filed by large pension plans, large welfare plans and
filed by defined benefit pension plans subject to the minimum certain DFEs to report loans, leases and fixed income obligations
funding standards and by certain money purchase defined in default or classified as uncollectible, and nonexempt
contribution plans required to complete Schedule B, lines 3, 9 transactions.
and 10, in accordance with the instructions for Schedule R, line
5. Schedule H (Financial Information). The Schedule H must be
filed by large pension plans, large welfare plans and DFEs to
Schedule C (Service Provider Information). The Schedule C must report financial information. For exemptions see CHECKLISTS
be filed by large pension plans, large welfare plans and certain and QUICK REFERENCE CHARTS.
DFEs when one or more service providers receive $5,000 or
more in compensation for services rendered during the year, and Schedule I (Financial Information - Small Plan). The Schedule I
to report terminated accountants and enrolled actuaries. must be filed by small pension plans and small welfare plans to
report financial information. For more information and
Schedule D (DFE/Participating Plan Information). The Schedule exemptions see CHECKLISTS and QUICK REFERENCE
D must be filed by plans and DFEs to identify and provide certain CHARTS.
financial information on master trust investment accounts
(MTIAs), CCTs, PSAs and 103-12 IEs in which the plan or DFE Schedule P (Annual Return of Fiduciary of Employee Benefit
participated or invested during the year. The Schedule D also Trust). The Schedule P must be filed for any fiduciary (trustee or
must be filed by DFEs to identify plans that participated or custodian) of an organization that is qualified under Code
invested in the DFE during the DFE year. Section 401(a), and exempt from tax under Code Section 501(a),
who wants to protect the organization under the statute of
Schedule E (ESOP Annual Information). The Schedule E must be limitations provided in Code Section 6501(a).
filed by all pension plans with employee stock ownership plan
(ESOP) benefits. Schedule R (Retirement Plan Information). The Schedule R must
be filed by large and small pension plans that are defined benefit
Schedule F (Fringe Benefit Annual Return). IRS Notice 2002-24 plans or are otherwise subject to Code section 412 or ERISA
suspended the requirement for employers sponsoring certain section 302. Schedule R may also be required for certain other
fringe benefit plans to file Schedule F attached to a completed pension benefit plans specified in the instructions.
Troubleshooter's Guide - 5
Schedule SSA (Annual Registration Statement Identifying Schedule of Assets Held for Investment Purposes at End of Plan
Separated Participants with Deferred Vested Benefits). The Year and Schedule of Investment Assets Both Acquired and
Schedule SSA must be filed by large and small pension plans that Disposed of Within the Plan Year. One or both of these
had separated participants with deferred vested benefits. schedules of assets held for investment purposes generally must
be filed by large pension plans, large welfare plans and DFEs
Schedule T (Qualified Pension Plan Coverage Information). The that are required to check "Yes" to Schedule H, line 4i.
Schedule T must be filed by large and small pension plans
(including profit-sharing and stock bonus plans) intended to be Schedule of Reportable Transactions. The schedule of reportable
qualified under Code section 401(a) or 403(a) to report coverage (5 percent) transactions must be filed by large pension plans,
information. More than one Schedule T may be required. large welfare plans and DFEs that are required to check "Yes" to
Employers using the three-year testing cycle rule in Revenue Schedule H, line 4j.
Procedure 93-42 must file Schedule T for the first year in the
plan's testing cycle. Schedule T need not be filed for the second Other supplemental attachments. Various supplemental
or third year in the cycle if the employer is permitted to rely on attachments must be filed when required by the instructions to
the earlier year's testing. If the employer does not or cannot use the Form 5500 and the schedules listed above.
the three-year testing rule, the Schedule T must be filed annually.
The report of an independent qualified public accountant. The
report of an independent qualified public accountant generally
must be filed by large pension plans, GIAs, 103-12 IEs and some
large welfare plans. In addition, certain small pension plans may
be required to file the report of an independent public
accountant. For more information and exemptions see
CHECKLISTS and QUICK REFERENCE CHARTS.
Troubleshooter's Guide - 6
EFAST PROCESSING OF THE FORM 5500
When the Form 5500 is received by PWBA, it will undergo a Financial activity. These tests determine if the filer
number of computerized edit checks. These computerized tests answered the appropriate narrative questions when financial
have been developed to identify errors or omissions in filings. activity took place.
The results of these tests will provide the basis for Missing amount. These tests determine if the filer failed to
correspondence to the filer. The correspondence will explain the indicate dollar amounts in the space provided after
reasons for test failures, how to submit missing or corrected answering "Yes" to questions or marking appropriate box(es)
information and a reminder that failure to respond or to provide on the Form 5500.
the requested information may result in enforcement action,
including the assessment of civil penalties. Nonexempt. These tests determine if the filer failed to
answer narrative questions on Schedule H or I.
Edit Testing Missing specify/explain information. These tests
determine that when "specify " or "explain" are indicated on
The Form 5500 and schedules will be subjected to computerized the Form 5500 and schedules, a narrative explanation has
edit tests that concentrate on ten major test functions: been provided with the filing.
Large plan/DFE financial/transaction information.
Mandatory answer/invalid data. These tests determine if These tests determine if the plan/DFE provided the required
a filer has failed to answer a required question, failed to information when the report of an independent accountant is
check an appropriate box or has entered information that is required to be part of the annual report.
not valid.
Final report. This test checks reports identified as a final
Math consistency. These tests are applied to financial filing for consistency with answers to certain other questions.
statements to ensure the totals and subtotals equal the
Entity control. These tests determine if consistent
calculated amounts making up each subtotal and total.
identifying data is reported each year for a particular filer in
These tests are failed when the individual items fail to
order to maintain accurate year-to-year records for each filer.
calculate to the amounts shown on the forms.
The following information is used in entity control testing:
Missing schedules. These tests verify that, when a filer employer identification number (EIN), plan number (PN),
answers "yes" to one or more of the questions on the Form plan name, sponsor name, effective date of plan, total assets
5500 or its schedules that require the attachment of other (beginning and end of year) and whether this is the first
schedules or when information on the financial statements return/report filed for the plan or DFE.
indicate that schedules are required to be attached, the
schedules are actually attached.
Troubleshooter's Guide - 7
EFAST Processing Tips instructions, schedules should be submitted only with a Form
5500 or in response to correspondence from the Pension and
To reduce the possibility of correspondence and penalties, we Welfare Benefits Administration (PWBA) regarding the
remind filers that: processing of your return/report.
Manual entries on the machine print forms are not permitted.
Paper forms must be obtained from the IRS or printed using
software from an EFAST approved software developer. Submit all schedules (including the correct number of
schedules) for which a box is checked on Form 5500, Part II,
Filings of computer scannable forms and schedules made on line 10.
anything other than official hand-print forms or forms
generated using EFAST-approved software may be returned, Do not attach or send any payments to EFAST.
unprocessed, to the filer. All Forms 5500 must be filed with PWBA electronically or at
Filings using photocopies of the computer scannable forms the EFAST address specified in the instructions under
and schedules may be returned or cause correspondence "Where To File The Form 5500."
requiring additional information.
Correspondence to Plan Administrators
All information should be in the specific fields or boxes
provided on the forms and schedules. Information entered
The computerized edit test system will generate correspondence
outside of the fields or boxes may not be processed.
to plan administrators for any Form 5500 filing which has failed
Do not use felt tip pens or other writing instruments that can at least one edit test. The correspondence will generally go to
cause signatures or data to bleed through to the other side of the sponsor of the DFE in the case of a DFE Form 5500. The
the paper. One-sided documents should have no markings on correspondence will contain the following information:
the blank side.
Paper should be clean without glue or other sticky General information explaining to the plan administrator the
substances. purpose of the correspondence, how to submit missing or
revised information, and that enforcement action may be
Do not staple the forms. Use binder clips or other fasteners taken if no response is received;
that do not perforate the paper.
Specific information that relates to the edit test failures noted
Do not submit extraneous material or information, such as in the filing. This will indicate what needs to be changed in
arrows used to indicate where to sign, notes between order to correct the reporting deficiency; and
preparers of the report, notations on the form, e.g., "DOL
Filer entity information, such as EIN, PN, plan name and
copy," etc.
sponsor name, when the information provided does not
Do not submit unnecessary or blank schedules. Except for match EFAST records.
certain Schedule SSA filings specifically permitted by the
Troubleshooter's Guide - 8
POTENTIAL FILING ERRORS AND HOW TO AVOID THEM
As explained in previous sections of this publication, the 2000 Failure to Completely Answer Multiple Part Questions
Form 5500 will be subjected to review to determine its
compliance with the filing requirements. The Department of A second potential error is the failure to completely answer
Labor, the Internal Revenue Service and the Pension Benefit multiple part questions. For all multiple part questions, you
Guaranty Corporation would like to minimize the amount of must answer all parts as directed. The computerized edit
correspondence sent to plan administrators for deficient filings. program is designed to identify any multiple part questions that
This section provides information on the potential errors by filers have not been completely answered.
and how to prevent them.
Reference to Supplemental Information Attached to the Forms
The potential errors considered most likely to be committed by
filers are: (1) omission of necessary information; (2) failure to A third potential error relates to attaching supplemental
completely answer multiple part questions; (3) attaching explanations to the forms. Unless specifically permitted in the
supplemental information to the forms instead of completing the instructions, under the new computerized edit system use of the
necessary line items; (4) attaching information that is not phrase "see attached," or similar wording, is not an acceptable
properly completed and labeled; and (5) failure to use acceptable answer in place of entering required information on the forms.
forms and to enter information on the forms correctly.
Attaching Information Not Properly Completed and Labeled
Omission of Necessary Information
A fourth potential error relates to attaching information that is
The forms, among other things, will be subjected to a review that not properly completed and labeled. All information submitted
includes the checking of specific data elements as well as with the Form 5500 must identify the plan or DFE name,
checking for omissions, such as missing signature, missing sponsor's EIN, PN, type of attachment, associated schedule and
financial data, missing independent qualified public accountant's line number.
report and missing fiscal year beginning and ending dates. All
items on the forms must be completed as required by the Failure to Use Acceptable Forms and to Enter Information on the
instructions. To enter none for monetary amounts, you may Forms Correctly
enter a zero (0) or leave the line blank, unless the instructions
require that a "0" be entered. A fifth potential error relates to not submitting acceptable forms
and to not entering information on the forms correctly. Under
the new EFAST processing system, all forms submitted must
meet certain minimum standards, including entering data only in
the space provided in accordance with the Form 5500
instructions. See the EFAST Web page at www.efast.dol.gov for
more information.
Troubleshooter's Guide - 9
COMPLIANCE/PENALTY SANCTIONS
Plan administrators should be aware that there are various Under the Department of Labor's implementing regulations, the
penalties discussed in the instructions which may be assessed or penalty is computed from the date on which the administrator
imposed for failing to comply with the annual reporting failed or refused to file the required information and continues
requirements. The Department of Labor has authority to assess until a satisfactory annual report is filed.
civil penalties of up to $1,100 per day per annual report against
plan administrators who fail or refuse to comply with all annual The regulation defines "a failure or refusal to file" as a failure or
reporting requirements. These Department of Labor civil refusal to file, in whole or in part, the information required by
sanctions apply with respect to annual reports required to be ERISA and the DOL's regulations at the time and in the manner
filed for plan years beginning on or after January 1, 1988. prescribed for annual report filings.
Voluntary Compliance The regulation also allows the DOL, at its discretion, to waive all
or part of a penalty if an administrator files a timely statement
If a review of a Form 5500 Series submission indicates that showing reasonable cause for failure to file a complete report
some of the required information was omitted, or the information when due. The period during which a statement of reasonable
furnished was not consistent with the instructions or with other cause is being considered by the DOL will not be taken into
information reported on the form, the filer will receive account for purposes of computing the penalty.
correspondence from PWBA requesting that the correct
information be provided. This correspondence is designed to In an effort to encourage pension and welfare plan administrators
achieve voluntary compliance with the reporting requirements. to file overdue annual reports, PWBA maintains a Delinquent
Filer Voluntary Compliance Program (DFVC Program) that
Civil Penalty Sanctions provides plan administrators with the opportunity to pay reduced
civil penalties for voluntarily complying with the annual reporting
If voluntary compliance is not achieved, the Secretary of Labor requirements. The Department published modifications to the
may assess a civil penalty of up to $1,100 a day from the date of DFVC Program on March 28, 2002, intended to further
a plan administrator's failure or refusal to file the annual report encourage delinquent administrators to use this program. The
required to be filed with the Secretary under ERISA section modifications reduced the penalties payable under the program
101(b). For purposes of this paragraph, an annual report that and simplified the rules governing participation in the program.
has been rejected under ERISA section 104(a)(4) for failure to For further information concerning the DFVC Program, you may
provide "material information" shall not be treated as having check the EFAST Internet site at www.efast.dol.gov or call
been filed with the Secretary of Labor. (202) 693-8360. (This is not a toll-free number.)
Troubleshooter's Guide - 10
WHERE TO FILE THE FORM 5500
The completed Form 5500, including all schedules, statements and attachments, may be filed with the Pension and Welfare Benefits
Administration (PWBA) by modem, mail or certain private delivery services.
MODEM:
See www.efast.dol.gov. This Internet site provides information concerning how to obtain the Form 5500 Electronic Filer User's Guide.
The Form EFAST-1, Application for EFAST Electronic Signature and Codes for EFAST Transmitters and Software Developers, must be filed
to obtain an electronic signature and codes required for modem filers. The Form EFAST-1 is also available on this site for on-line
completion and printing.
MAIL OR PRIVATE DELIVERY SERVICE:
To file a Form 5500 on paper or on magnetic tape, floppy diskette or CD-ROM, use the following address:
PAPER: FLOPPY DISC, CD-ROM OR TAPE: PRIVATE DELIVERY SERVICE:
(Paper, Floppy Disc, CD-ROM or Tape)
PWBA PWBA
P.O. Box 7043 P.O. Box 7041 PWBA/NCS
Lawrence, Kansas 66044-7043 Lawrence, Kansas 66044-7041 Attn: EFAST
3833 Greenway Drive
Lawrence, Kansas 66046-1290
You can use certain private delivery services that have been designated by the IRS to meet the "timely mailing as timely filing/paying" rule
for tax returns and payments. The October 2001 list of designated private delivery services published by the IRS includes only the
following: Airborne Express (Airborne): Overnight Air Express Service; Next Afternoon Service; Second Day Service. DHL Worldwide
Express (DHL): DHL "Same Day" Service; DHL USA Overnight. Federal Express (FedEx): FedEx Priority Overnight; FedEx Standard
Overnight; FedEx 2Day. United Parcel Service (UPS): UPS Next Day Air; UPS Next Day Air Saver; UPS 2nd Day Air; UPS 2nd Day Air A.M.;
UPS Worldwide Express Plus and UPS Worldwide Express. The private delivery service can tell you how to get written proof of the mailing
date.
Troubleshooter's Guide - 11
CHECKLISTS and QUICK REFERENCE CHARTS
FOR PENSION PLANS, WELFARE PLANS, FRINGE BENEFIT PLANS AND DIRECT FILING ENTITIES
Troubleshooter's Guide - 13
CHECKLIST - LARGE AND SMALL PENSION PLANS
Large Pension Plan - Complete the lines on the Form 5500 and schedules and provide any statements and attachments in
accordance with the instructions. An annual return/report for a large employee pension benefit plan consists of:
(1) Form 5500 (be certain to enter all applicable plan characteristics codes on line 8);
(2) Schedule A, as many as needed, to report insurance contract information;
(3) Schedule B, if applicable, to report actuarial information;
(4) Schedule C, if applicable, to list the 40 most highly compensated service providers, including the contract administrator, and any
terminated accountants or enrolled actuaries;
(5) Schedule D, to list all CCTs, PSAs, MTIAs and 103-12 IEs in which the plan participated or invested during the plan year;
(6) Schedule E, if applicable, to report ESOP information;
(7) Schedule G, to report loans, leases and fixed income obligations in default or classified as uncollectible, and nonexempt
transactions;
(8) Schedule H, to report plan financial information;
(9) Schedule P, as many as needed, to report trust fiduciary information;
(10) Schedule R, if applicable, to report retirement plan information;
(11) Schedule SSA, if applicable, to report separated deferred vested participant information;
(12) Schedule T, as many as needed, to report tax qualified pension plan coverage information;
(13) Schedules of assets held for investment purposes and reportable transactions (see Schedule H instructions); and
(14) The report of the independent qualified public accountant identified on Schedule H, line 3d, unless
Schedule H, line 3b(2), is checked.
Note: Certain pension plans or arrangements using accounts or annuities described in Code section 403(b) and plans using individual
retirement accounts or annuities described in Code section 408 as the sole funding vehicle for providing benefits need only complete
Form 5500, Part I and Part II, lines 1 through 5 and 8. Fully insured pension plans described in the instructions for Limited Pension Plan
Reporting are exempt from attaching Schedule H and an accountant's opinion, and from the requirement to engage an independent
qualified public accountant. See the instructions for Limited Pension Plan Reporting.
Also see the Large and Small Pension Plan Quick Reference Chart on page 20.
Troubleshooter's Guide - 14
CHECKLIST - LARGE AND SMALL PENSION PLANS (continued)
Small Pension Plan - Complete the lines on the Form 5500 and schedules and provide any statements and attachments in
accordance with the instructions. An annual return/report for a small employee pension benefit plan consists of:
(1) Form 5500 (be certain to enter all applicable plan characteristics codes on line 8);
(2) Schedule A, as many as needed, to report insurance contract information;
(3) Schedule B, if applicable, to report actuarial information;
(4) Schedule D, to list all CCTs, PSAs, MTIAs and 103-12 IEs in which the plan participated or invested during the plan year;
(5) Schedule E, if applicable, to report ESOP information;
(6) Schedule I, to report plan financial information (including the report of an independent qualified public accountant if required by
line 4k);
(7) Schedule P, as many as needed, to report trust fiduciary information;
(8) Schedule R, if applicable, to report retirement plan information;
(9) Schedule SSA, if applicable, to report separated vested participant information; and
(10) Schedule T, as many as needed, to report tax qualified pension plan coverage information.
Note: Certain pension plans and arrangements using accounts or annuities described in Code section 403(b) and plans using individual
retirement accounts or annuities described in Code section 408 as the sole funding vehicle for providing benefits need only complete
Form 5500, Part I and Part II, lines 1 through 5 and 8. Fully insured pension plans described in the instructions for Limited Pension Plan
Reporting are exempt from attaching Schedule I. See the instructions for Limited Pension Plan Reporting.
Also see the Large and Small Pension Plan Quick Reference Chart on page 20.
Troubleshooter's Guide - 15
CHECKLIST - LARGE AND SMALL WELFARE PLANS
Large Welfare Plan - Complete the lines on the Form 5500 and schedules and provide any statements and attachments in
accordance with the instructions. An annual report for a large employee welfare benefit plan consists of:
(1) Form 5500 (enter all applicable plan characteristics codes on line 8);
(2) Schedule A, as many as needed, to report insurance contract information;
(3) Schedule C, if applicable, to list the 40 most highly compensated service providers, including the contract administrator, and any
terminated accountants;
(4) Schedule D, to list all CCTs, PSAs, MTIAs and 103-12 IEs in which the plan participated or invested during the plan year;
(5) Schedule G, to report loans, leases and fixed income obligations in default or classified as uncollectible, and nonexempt
transactions;
(6) Schedule H, to report plan financial information;
(7) Schedules of assets held for investment purposes and reportable transactions (see Schedule H instructions); and
(8) The report of the independent qualified public accountant identified on Schedule H, line 3d, unless Schedule H, line 3b(2), is
checked.
Small Welfare Plan - Complete the lines on the Form 5500 and schedules and provide any statements and attachments in
accordance with the instructions. An annual report for a small employee welfare benefit plan consists of:
(1) Form 5500 (enter all applicable plan characteristics codes on line 8);
(2) Schedule A, as many as needed, to report insurance contract information;
(3) Schedule D, to list all CCTs, PSAs, MTIAs and 103-12 IEs in which the plan participated or invested during the plan year; and
(4) Schedule I, to report plan financial information.
Note: An unfunded, fully insured or combination unfunded/insured welfare plan with fewer than 100 participants at the beginning of the
plan year that meets the conditions of 29 CFR §2520.104-20 is exempt from filing the Form 5500 (see the instructions under the heading
"Do Not File A Form 5500 For A Welfare Benefit Plan That is Any Of The Following"). If such a plan covers 100 or more participants, a
Form 5500 is required, but the Schedule H, schedules of assets held for investment purposes and reportable transactions, and
accountant's report are not required. A Schedule G must be attached to this Form 5500 to report any nonexempt transactions.
Also see the Large and Small Welfare Plan Quick Reference Chart on page 22.
Troubleshooter's Guide - 16
CHECKLIST - FRINGE BENEFIT PLANS
Fringe Benefit Plan - IRS Notice 2002-24 suspended the requirement to file Schedule F attached to a completed Form 5500
pursuant to Code section 6039D for all plan years for which an annual information return has not been filed, including years prior to
2001. Any future reporting obligations under Code section 6039D will apply only to plan years beginning on or after the date IRS
publishes further guidance. An annual information return for a fringe benefit plan described in Internal Revenue Code section 6039D,
i.e., cafeteria plans described in Code section 125, educational assistance programs described in Code section 127 and adoption
assistance programs described in Code section 137, previously consisted of:
(1) Form 5500, except lines 6, 7 and 9 - be certain to check the line 8c and 10c boxes; and
(2) Schedule F.
IRS Notice 2002-24 does not affect annual reporting requirements under Title I of ERISA, or relieve administrators of employee
!
CAUTION
benefit plans from any obligation to file a Form 5500 and any required schedules (other than Schedule F) under that title. Plan
administrators must separately determine the reporting obligations for fringe benefit and welfare benefit plans. There are
instances when a fringe benefit plan subject to section 6039D of the Code may be characterized as a welfare benefit plan subject to Title I
of ERISA. For example, a Code section 125 flexible spending arrangement that provides reimbursements to participants for medical
expenses may itself be a welfare benefit plan subject to Form 5500 filing requirements (other than Schedule F) under Title I of ERISA. A
"premium conversion only" Code section 125 arrangement that is not a welfare benefit plan subject to Form 5500 filing requirements
under Title I of ERISA (see ERISA Advisory Opinion 96-12A) may be used to fund an associated group health plan that is a Title I welfare
benefit plan. Pursuant to IRS Notice 2002-24, such a section 125 arrangement would not be required to file a Form 5500 or Schedule F,
but the administrator would have to determine the Form 5500 reporting obligations under Title I of ERISA for the group health plan. See
the Form 5500 instructions for more information about the filing requirements for employee benefit plans, including annual reporting
exemptions for certain small welfare plans (i.e., plans with fewer than 100 participants at the beginning of a plan year that are fully
insured, unfunded, or a combination of insured and unfunded).
Also see the Large and Small Welfare Plan Quick Reference Chart on page 22.
Troubleshooter's Guide - 17
CHECKLIST - DIRECT FILING ENTITIES (DFEs)
A Form 5500 filed for a Master Trust Investment Account (MTIA), Common/Collective Trust (CCT), Pooled Separate Account (PSA),
103-12 Investment Entity (103-12 IE) or Group Insurance Arrangement (GIA) is considered part of the annual report for participating or
investing pension and welfare plans. If the Form 5500 filed by the DFE is incomplete or inaccurate, the participating or investing plans'
annual reporting requirements may not be met and the administrator of these plans may be subject to penalties for noncompliance. The
reporting requirements for a DFE are based upon the type of DFE as follows:
MTIA - Complete the lines on the Form 5500 and schedules and provide any statements and attachments in accordance with the
instructions. An annual report for an MTIA consists of:
(1) Form 5500, enter the letter "M" on line A(4), and skip lines C, D, 1c, 2d and 6 through 9;
(2) Schedule A, as many as needed, to report insurance contract information;
(3) Schedule C, if applicable, to list the 40 most highly compensated service providers;
(4) Schedule D, to list all plans that participated in the MTIA and, if applicable, to list all CCTs, PSAs and 103-12 IEs in which this
MTIA invested during the MTIA year;
(5) Schedule G, to report loans, leases and fixed income obligations in default or classified as uncollectible, and nonexempt
transactions;
(6) Schedule H, to report financial information; and
(7) Schedules of assets held for investment purposes and reportable transactions (see Schedule H instructions).
CCT or PSA - Complete the lines on the Form 5500 and schedules and provide any statements and attachments in accordance with
the instructions. An annual report for a CCT or PSA consists of:
(1) Form 5500, enter the applicable letter "C" or "P" on line A(4), and skip lines C, D, 1c, 2d and 6 through 9;
(2) Schedule D, to list all plans that invested in the CCT or PSA and, if applicable, to list all CCTs, PSAs and 103-12 IEs in which this
CCT or PSA invested during the CCT or PSA year;
(3) Schedule H, to report financial information.
Also see the DFE Quick Reference Chart on page 23.
Troubleshooter's Guide - 18
CHECKLIST - DIRECT FILING ENTITIES (DFEs) (continued)
103-12 IE - Complete the lines on the Form 5500 and schedules and provide any statements and attachments in accordance with the
instructions. An annual report for a 103-12 IE consists of:
(1) Form 5500, enter the letter "E" on line A(4) and skip lines C, D, 1c, 2d and 6 through 9;
(2) Schedule A, as many as needed, to report insurance contract information;
(3) Schedule C, if applicable, to list the 40 most highly compensated service providers and any terminated accountants;
(4) Schedule D, to list all plans that participated in the 103-12 IE and, if applicable, to list all CCTs, PSAs and 103-12 IEs in which this
103-12 IE invested during the 103-12 IE year;
(5) Schedule G, to report loans, leases and fixed income obligations in default or classified as uncollectible and nonexempt
transactions;
(6) Schedule H, to report financial information;
(7) Schedules of assets held for investment purposes (see Schedule H instructions); and
(8) The report of the independent qualified public accountant identified on Schedule H, line 3d.
GIA - Complete the lines on the Form 5500 and schedules and provide any statements and attachments in accordance with the
instructions. An annual report for a GIA consists of:
(1) Form 5500, enter the letter "G" on line A(4) and skip lines C and 2d;
(2) Schedule A, as many as needed, to report insurance contract information;
(3) Schedule C, if applicable, to list the 40 most highly compensated service providers and any terminated accountants;
(4) Schedule D, to list all plans that participated in the GIA and, if applicable, to list all CCTs, PSAs and 103-12 IEs in which this GIA
invested during the GIA year;
(5) Schedule G, to report loans, leases and fixed income obligations in default or classified as uncollectible, and nonexempt
transactions;
(6) Schedule H, to report financial information;
(7) Schedules of assets held for investment purposes and reportable transactions (see Schedule H instructions); and
(8) The report of the independent qualified public accountant identified on Schedule H, line 3d.
Also see the DFE Quick Reference Chart on page 23.
Troubleshooter's Guide - 19
Large and Small Pension Plan Quick Reference Chart
This chart provides only general guidance. Not all rules and requirements are reflected. Refer to the specific Form 5500 instructions for complete information.
Requirement Large Pension Plan Small Pension Plan
Must complete as specified on form. See the Who Must File, What To Must complete as specified on form. See the Who Must File, What To
Form 5500 File and Line-by-Line Instructions. File and Line-by-Line Instructions.
Schedule A
Must complete if plan has insurance contracts. Must complete if plan has insurance contracts.
(Insurance Information)
Must complete if defined benefit pension plan subject to minimum Must complete if defined benefit pension plan subject to minimum
Schedule B funding standards or if money purchase defined contribution plan funding standards or if money purchase defined contribution plan
(Actuarial Information) required to complete Schedule B, lines 3, 9 and 10 in accordance with required to complete Schedule B, lines 3, 9, and 10 in accordance with
the instructions for Schedule R, line 5. the instructions for Schedule R, line 5.
Schedule C
Must complete if service provider was paid $5,000 or more and/or an NOT REQUIRED FOR SMALL PENSION PLANS.
(Service Provider
accountant or enrolled actuary was terminated.
Information)
Schedule D
Must complete Part I if plan participated in a CCT, PSA, MTIA or 103-12 Must complete Part I if plan participated in a CCT, PSA, MTIA or 103-12
(DFE/Participating
IE. IE.
Plan Information)
Schedule E
(ESOP Annual Must complete if ESOP. Must complete if ESOP.
Information)
Schedule G
Must complete if Schedule H, lines 4b, 4c or 4d are required to be NOT REQUIRED FOR SMALL PENSION PLANS.
(Financial Transaction
checked "Yes."
Schedules)
Schedule H Must complete. See Limited Pension Plan Reporting instructions for
(Large Plan and DFE exemptions for certain 403(b) Arrangements, IRA Plans and Fully NOT REQUIRED - SEE SCHEDULE I.
Financial Information) Insured Pension Plans.
Schedule I Must complete. See the Limited Pension Plan Reporting instructions for
(Financial Information-- NOT REQUIRED - SEE SCHEDULE H. exceptions for certain 403(b) Arrangements, IRA Plans and Fully
Small Plan) Insured Pension Plans.
Troubleshooter's Guide - 20
Large and Small Pension Plan Quick Reference Chart (continued)
This chart provides only general guidance. Not all rules and requirements are reflected. Refer to the specific Form 5500 instructions for complete information.
Requirement Large Pension Plan Small Pension Plan
Schedule P Must file to start running of statute of limitations under Code section Must file to start running of statute of limitations under Code section
(Annual Return of 6501(a). 6501(a).
Fiduciary of Employee
Benefit Trust)
Schedule R Must complete unless: (1) the plan is entitled to Limited Pension Plan Must complete unless: (1) the plan is entitled to Limited Pension Plan
(Retirement Plan Reporting as specified in the instructions, or (2) if each of the following Reporting as specified in the instructions, or (2) if each of the following
Information) four conditions is met: (A) the plan is not a defined benefit plan or four conditions is met: (A) the plan is not a defined benefit plan or
otherwise subject to the minimum funding standards of Code section otherwise subject to the minimum funding standards of Code section
412 or ERISA section 302; (B) no in-kind distributions reportable on line 412 or ERISA section 302; (B) no in-kind distributions reportable on line
1 of Schedule R were distributed during the plan year; (C) no benefits 1 of Schedule R were distributed during the plan year; (C) no benefits
were distributed during the plan year which are reportable on Form were distributed during the plan year which are reportable on Form
1099-R using an EIN other than that of the plan sponsor or plan 1099-R using an EIN other than that of the plan sponsor or plan
administrator; (D) in the case of a plan that is not a profit-sharing, ESOP administrator; (D) in the case of a plan that is not a profit-sharing, ESOP
or stock bonus plan, no plan benefits were distributed during the plan or stock bonus plan, no plan benefits were distributed during the plan
year in the form of a single sum distribution. year in the form of a single sum distribution.
Schedule T Must complete if qualified plan unless permitted to rely on coverage Must complete if qualified plan unless permitted to rely on coverage
(Qualified Pension Plan testing information for prior year. See the Schedule T instructions Who testing information for prior year. See the Schedule T Who Must File
Coverage Information) Must File and When to File for exceptions. and When to File instructions for exceptions.
Schedule SSA
(Annual Registration
Statement Identifying Must complete if plan had separated participants with deferred vested Must complete if plan had separated participants with deferred vested
Separated Participants benefits to report. benefits to report.
With Deferred Vested
Benefits)
Schedules of Assets and Must complete if Schedule H, lines 4i or 4j, are required to be checked
Reportable (5%) "Yes." See the instructions for the required format and use the same size NOT REQUIRED FOR SMALL PENSION PLANS.
Transactions paper as the Form 5500.
Independent Qualified Must attach if a box on Schedule H, line 3a, is required to be checked. NOT REQUIRED FOR SMALL PENSION PLANS MEETING THE CONDITIONS OF
Public Accountant's 29 CFR §2520.104-46.
Report (NOTE: NEW CONDITIONS APPLY TO PLAN YEARS BEGINNING AFTER
APRIL 17, 2001. SEE INSTRUCTIONS FOR SCHEDULE I, LINE 4K.)
Troubleshooter's Guide - 21
Large and Small Welfare Plan Quick Reference Chart
This chart provides only general guidance. Not all rules and requirements are reflected. Refer to the specific Form 5500 instructions for complete information.
Requirement Large Welfare Plan Small Welfare Plan
Must complete as specified on form. See the Who Must File, What To Must complete as specified on form. See the Who Must File, What To
Form 5500
File, and Line-by-Line Instructions. File, and Line-by-Line Instructions.
Schedule A
(Insurance Information) Must complete if plan has insurance contracts. Must complete if plan has insurance contracts.
Schedule C
Must complete if service provider was paid $5,000 or more and/or an
(Service Provider NOT REQUIRED FOR SMALL WELFARE PLANS.
accountant was terminated.
Information)
Schedule D
Must complete Part I if plan participates in a CCT, PSA, MTIA or 103-12 Must complete Part I if plan participates in a CCT, PSA, MTIA or 103-12
(DFE/Participating Plan
Information) IE. IE.
Schedule F FILING REQUIREMENT SUSPENDED FILING REQUIREMENT SUSPENDED
(Fringe Benefit Plan PREVIOUSLY REQUIRED TO BE COMPLETED TO REPORT FRINGE BENEFIT PLAN PREVIOUSLY REQUIRED TO BE COMPLETED TO REPORT FRINGE BENEFIT PLAN
Information) INFORMATION UNDER CODE SECTION 6039D. SEE IRS NOTICE 2002-24. INFORMATION UNDER CODE SECTION 6039D. SEE IRS NOTICE 2002-24.
Schedule G Must complete if Schedule H, lines 4b, 4c or 4d, are required to be
checked "Yes," or, if Schedule H is not required to be completed, to NOT REQUIRED FOR SMALL WELFARE PLANS.
(Financial Schedules)
report any nonexempt transactions.
Must complete. See the Welfare Benefit Plan Filing Requirements
Schedule H
instructions for exemptions for unfunded, fully insured and combination NOT REQUIRED - SEE SCHEDULE I.
(Large Plan and DFE
unfunded/insured welfare plans that meet t