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week ending September 18th, 2020 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! Editor's Choice Compliance Form 5500 Basics: What Sponsors Need to Know 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. Compliance What to Know About Financial Audits Filed with Form 5500s Plan sponsors required to file a financial audit along with their Form 5500 should know how regulators use the information and how to pick the best auditor. Ask the Experts Tips to Reduce Participant Count to Avoid Financial Audit Requirement “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?” Compliance Engaging With Plan Auditors Can Improve Plan Operations and Governance In testimony to the ERISA Advisory Council, James Haubrock, with the American Institute of Certified Public Accountants (AICPA), explained how using findings from retirement plan financial audits can help plan sponsors improve their processes and compliance. Compliance Retirement Plan Financial Audit Processes Are Evolving New processes and systems can cut costs for plan sponsors, streamline the work and allow for any discrepancies to be caught earlier. Popular Reads Compliance SECURE Act 2.0 Passed Unanimously by Ways and Means Committee A rare unanimous affirmative voice vote by the Ways and Means Committee allows the SECURE Act 2.0 to be considered by the full House of Representatives. 2020 Recordkeeping Survey Data and Research Health Care Costs in Retirement Remain a Top Stressor Fidelity’s latest analysis shows people often underestimate the potential cost of health care in retirement, even after two decades of watching health care costs increase year-over-year. 2021 Health Savings Account Survey Benefits Building Inclusivity Into Employee Benefits While it’s a crucial step, experts say promoting an inclusive workplace entails more than offering benefits to different employee demographics.  Did someone forward you this newsletter? Sign up here to get PLANSPONSOR Weekend directly in your mailbox!

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