One-participant plans. An employer that sponsors a one-participant plan may file a Form 5500-EZ on paper with the IRS or the Form 5500-SF electronically with the DOL. Many 5500 preparers have been reticent to recommend the use of the Form 5500-SF for their one-participant plans because the forms are publicly disclosed on the DOL website once filed. The IRS has announced in its online Employee Plans Newsletter (December 20, 2011) that, beginning on January 1, 2012, a one-participant plan filing a Form 5500-SF will not be publicly disclosed on the DOL website. By removing this impediment to electronic filing, the IRS apparently is hoping to encourage more one-participant plans to file electronically.

Form 5500 electronic signatures. Each Form 5500 and Form 5500-SF (Form 5500) that is filed with the DOL must be electronically signed by the plan administrator or by the preparer properly authorized to sign on behalf of the plan administrator. However, in some cases, preparers have not been able to locate the plan administrator or obtain permission to sign on behalf of the plan administrator before a filing deadline. Therefore, to avoid costly late filing penalties, the preparers submitted the Form 5500 without the signature. The DOL would process the form but issue a “filing stopped" status. The plan administrator would need to amend the filing, obtain the proper electronic signature and re-file the Form 5500 with the DOL. Commencing January 1, 2012, the DOL no longer will permit this filing option. A Form 5500 filed without an electronic signature will not be processed by the DOL. It will receive a filing status of “unprocessable," which means that the DOL will not consider the return to be filed. Accordingly, if the plan administrator does not obtain an electronic signature and file the form (as an original return) with the DOL prior to the deadline, the plan administrator will be subject to late filing penalties.

The DOL will continue to process a Form 5500 that is filed with an invalid electronic signature (e.g., signing credentials that have not been activated). Such filings will receive a “filing stopped" status and the preparer will need to amend the Form 5500, obtain a valid electronic signature and re-file the form (as an amended return) with the DOL.

2011 Form 5500 and instructions. The DOL, the IRS and the PBGC have released advance informational copies of the 2011 Form 5500 annual return/report and related instructions. You may view the forms and instructions online at www.efast.dol.gov. These advance copies of the 2011 Form 5500 are for informational purposes only and a preparer cannot use the forms to file a 2011 Form 5500.

Practical Guide to Plan Fee Disclosures Workshop – January/February 2012. Are you ready to implement these rules in the next few months? Most practitioners would say – “no." That is where we can help. Using forms, case studies and examples, this workshop will provide you with the necessary tools and guidance to answer the tough questions and show you how to implement the regulations. Online registration is now open. For more details, visit our Web site.

Orlando Advanced Pension Conference – Register by January 17 and Save $150. Loews Royal Pacific Resort at Universal Orlando® – February 15-17, 2012 – Earn up to 19 hours of CE credits. See the complete list of topics and register online on our Web site.

Just for ERPAs Workshop – February 14, 2012, Orlando, FL – Earn up to 8 hours of ERPA credit, including 2 ethics hours. Early bird discount ends on January 17. See event agenda and register online on our Web site.