The Form 5500 is an ERISA requirement for retirement plans to report and disclose operating procedures. Advisors use this to confirm that plans are managed according to ERISA standards. The form also allows individuals access to information, protecting the rights and benefits of the plan participants and beneficiaries covered under the plan.
The Department of Labor (DOL) recently reported that in reviewing Form 5500 data for 2018 a significant number of multiple employer plans (MEPs), including MEPs sponsored by professional employer organizations (PEOs), failed to include a complete and accurate list of participating employers with their Form 5500/5500-SF.
The Internal Revenue Service’s (IRS’s) Employee Benefit Audit Program is used to audit and enforce. The IRS’s emphasis, with respect to defined contribution plans is on compliance with the requirements of the Internal Revenue Code (the Code), the plan’s tax qualification and administration of all plan documents. In the event of noncompliance with regulations, the IRS can impose taxes, penalties and interest.
