PT Benefits Addresses The Challenges Of Filing IRS Form 5500 Under ERISA Plans

Filing IRS Form 5500 under ERISA plans can be challenging. Pontrelli, Timour & Associates, Inc. needs to let our clients and potential clients know that ERISA (Employee Retirement Income Security Act) plans with 100 or more participants at the beginning of the plan year are required to file an IRS Form 5500. An ERISA financial audit may also be required. Smaller plans with less than 100 participants at the beginning of the plan year may be eligible to file IRS Form 5500-SF. Certain welfare benefit plans with less than 100 participants at the beginning of the plan year may be exempt from filing IRS Form 5500.

IRS Form 5500 Filing Challenges

irs form 5500

Importance of Filing IRS Form 5500

The IRS Form 5500 must be filled no later than 7 months (or up to 9 1/2 months with extensions) after the end of the plan year. As a result, the necessity for filing plans for 2014 is rapidly approaching. A two and one half month extension may be obtained by filing Form 5558 with the IRS. PT Benefits. Rather than filing such an extension, it is better to work with an experienced group benefits leader like PT Benefits to file such forms.

Did you know that the penalties can be up to $1,100 per day for failure or refusal to file an IRS Form 5500? If you discover that you have not filed all your Forms 5500, do not wait for the government to find you! Please take advantage of the Delinquent Filer Voluntary Compliance Program. PT Benefits can help. We are available to prepare your annual Form 5500 and Summary Annual Report.

Questions About IRS Form 5500

It is essential to know how to define a participant in such plans. The IRS Form 5500 instructions define “participant” for purposes of filing in a confusing manner, but PT Benefits can help. An individual becomes a participant covered under an employee welfare benefit plan when one of the following happens:

  1. The date designated by the plan as the date on which the individual begins participation in the plan;
  2. The date on which the individual becomes eligible under the plan for a benefit subject only to occurrence of the contingency for which the benefit is provided; or
  3. The date on which the individual makes a contribution to the plan, whether voluntary or mandatory.

PT Benefits understands how intimidating all of the bureaucracy of IRS filings and ERISA plans and PPACA can be for any company. What is essential is to stay in compliance and not make careless mistakes. As a group benefits leader and a qualified insurance broker, PT Benefits can help with IRS Form 5500. To learn more about ERISA filings, please call 626-795-4138 and speak to one of our brokers.

Raphy Timour

About 

Co-Founder at Pontrelli, Timour & Associates, Inc.

A California native of Pasadena, Raphy Timour began his career at Automatic Data Processing as an outside sales representative, achieving President Club status each and every year at ADP. Wanting to provide clients with a more customercentric approach, Raphy Timour started Pontrelli, Timour & Associates, Inc. in 2003 with his childhood friend Chris Pontrelli. Raphy Timour has a Health & Insurance License from the California Department of Insurance.

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