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week ending September 18th, 2020
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With the events of this year, more plan sponsors than usual may have requested an extension of their Form 5500 filing, which means the filings are due next month. Plan sponsors with 100 or more participants must also file a financial audit along with their Form 5500. These financial audits can be useful for improving plan operations and governance. In this edition of PLANSPONSOR Weekend, you’ll find basic information you need to know from award-winning articles, tips for the audit process and suggestions for how to learn from the audit results. Stay well! |
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Editor's Choice |
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Compliance
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Form 5500 Basics: What Sponsors Need to Know
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The purpose of Form 5500 is to obtain information regarding plan design and basic plan sponsor information, and the regulatory penalties for failures in filing the form can be severe. 
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Ask the Experts
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Tips to Reduce Participant Count to Avoid Financial Audit Requirement
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“We are a small nonprofit that sponsors an ERISA 403(b) plan. Until now our plan has been small enough to avoid the plan financial audit requirement, but, due to a lot of former employees retaining balances in the plan, we will now have more than 100 participants on 1/1/2020. We can use the 80/120 rule to avoid an audit for 2020 (our plan is a calendar year plan), but I want to be proactive here to avoid crossing the 120-particpant threshold that would require audits in the future. Are there any steps I can take to reduce the number of participants in the plan?”
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Popular Reads |
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Deals and People
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Retirement Industry People Moves
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Northern Trust announces hiring of new CIO; Morgan Stanley partners with Empower; and IRIC appoints executive director.
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