Business of Benefits

Business of Benefits

Tag Archives: 403(b) Form 5500

Ignore Those Form 5500 Instructions: 403(b) Plans DO NOT Use Form 5330 For Late Deposits

Posted in 403(b), Complex Prohibited Transactions
One of the continuing confusions in how 401(a) rules apply to 403(b) plan  involves the reporting rules related to the correction and reporting on the 5500 of one of the most common errors in any elective deferral plan: the late deposit of those deferrals into the plan.  Neither non-ERISA or ERISA 403(b) will ever file a Form 5330. Ever. Even when the VFCP program is being used to correct the late deposit. Adding to the confusion is that the Form 5500 instructions do not differentiate between 403(b) plans and 401(a) plans. It simply states that  all "defined contribution" plans need to file the Form 5330 for late deposits, and pay the penalty tax. … Continue Reading

403(b) Policy Loan’s Continued Form 5500 Reporting Problem

Posted in Uncategorized
One of the more intractable issues with which ERISA 403(b) plans sponsors must deal with every year arises from the “policy loans” issued by insurance carriers under the 403(b) annuity contracts held under the plans. There is simply no good way to report these loans on the Form 5500, and the newly proposed Form 5500 changes do not address this ongoing issue.… Continue Reading

Using the Third Condition of DOL’s FAB 2009-2 to Manage 403(b) Audit Expense

Posted in 403(b)
The real key to making the FAB work for the employer in keeping auditing costs down is in the sensible application of the FAB's 3rd condition. I would suggest that applying it consists of two parts. First, use a reasonable effort to determine and find contracts that were related to the plan at some time in the past and, secondly, making a reasonable effort to determine whether or not the rights under those contracts are "legally enforceable" by the individual.… Continue Reading

2009 Form 5500 Schedules A and C Will Create New Fiduciary Burdens For Plan Sponsors

Posted in Uncategorized
Retirement plan vendors throughout the industry are engaging in efforts to prepare for the new disclosure requirements for the 2009 Form 5500 schedules, particularly the disclosures related to direct and indirect compensation under Schedule C and the substantial requirements for Schedule A. I had the pleasure of a couple of informative conversations this week which… Continue Reading

CPA Group Struggles With 403(b) Rules

Posted in 403(b)
 BNA reported on August 20th the concerns of the AICPA’s  403(b) Plan Audit Task Force about practitioners "misunderstanding" of the impact of the recently issued DOL FAB 2009-2, where the DOL took steps to alleviate some of the more draconian impacts of the new Form 5500 reporting rules for certain 403(b) plans. Task force members are reported… Continue Reading
.