FIS Relius
No Blanket Extension of 5500 Due Date 7/27/2010
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The DOL has decided not to grant a blanket extension for filers of Form 5500 and Form 5500-SF. In a letter to the American Benefits Council dated July 21, 2010, the DOL stated it has concluded that a blanket extension for all filers is neither necessary nor appropriate. Therefore, the normal July 31, 2010, due date will apply for a calendar year plan to the 2009 plan year filing, unless the employer extends the due date. Proponents of the blanket extension had requested an extension to the later of: (1) 9½ months after the end of the plan year; or (2) December 31, 2010. The DOL stated that while it recognizes that some plans may need additional time to file, it believes the current processes for obtaining an extension are adequate to address those needs.

An employer can obtain a 2½ month extension to file a Form 5500 or Form 5500-SF by filing Form 5558 with the IRS on or before the normal due date for the return. The Form 5558 does not require the employer’s signature to obtain the extension. The DOL does not believe that requiring the filing of the Form 5558 imposes a significant burden on an employer requesting the extension, but states a blanket extension would require system changes that would be both complicated and costly.

An employer wishing to have an extension to file Form 5500 or Form 5500-SF also may obtain an automatic extension of the due date if the employer’s taxable year and the plan year are the same and the employer has obtained an extension for filing its Federal income tax return. In that case, the extended due date for filing Form 5500 or Form 5500-SF is the same as the due date of the employer’s income tax return.

Advanced Pension Conference – Chicago, August 30 – September 1, 2010
The significant changes to the Schedule C foreshadow the new fee disclosure regulations that the DOL will issue this summer. The new regulations will impact most retirement plans and will require revisions to service provider agreements with the plan. The Chicago Advanced Pension Conference will provide practical insight into the new regulations. The conference will also address other topics such as Designing fee agreements, Schedule C case studies, Troubleshooting EFAST2, Hot Topics in Plan Corrections, and Cash Balance Plans for DC Practitioners. Click here for more information.