Pension Systems Corporation is not a tax advisor and should not be construed to be such. 401k FedForms is meant to simplify your 401k related federal reporting by pointing out where within your 401k software you can find certain requested information. 401k FedForms is not meant as a step-by-step instruction manual on completing your 401k related federal reporting materials nor is it meant to replace the instructions published by the IRS. Furthermore, 401k FedForms does not address any state 401k related regulations or reporting requirements, which in some cases differ from their federal counterparts. You or your tax advisor should check with your state's tax agency regarding its 401k regulations and reporting requirements.
401kFedForms--A free online service for small businesses using the affordable, "run-it-yourself" 401(k) plans such as 401k Easy (www.401keasy.com). The website is designed to simplify your 401k-related federal reporting by helping you quickly locate the information you need for filing purposes.
Please Note: As an alternative to preparing and filing the Form 5500-SF (and companion Summary Annual Report) yourself, you can retain PSC to prepare and file them on your behalf for only $495! Please click here, or call us at (818) 501-4021 for specifics.
EFAST2 is an all-electronic system designed by the Department of Labor, Internal Revenue Service, and Pension Benefit Guaranty Corporation to simplify and expedite the submission, receipt, and processing of the Form 5500 and Form 5500-SF. IRS Form 5500 and Form 5500-SF must be electronically filed each year by employee benefit plans to satisfy annual reporting requirements under the Employee Retirement Income Security Act (ERISA) and the Internal Revenue Code.
The IRS requires all companies that sponsor a 401k plan to make an annual informational filing called the Form 5500-SF (or for larger plans, Form 5500). This filing is due July 31 of each year. If the filing is not going to meet this deadline, an automatic extension may be applied. The extension is automatically granted, and adds another 60 days to the annual deadline.
Filing the Form 5500-SF is easier now than ever before. The filing is done completely online, at a special website set-up by the US Department of Labor. This online filing system is called eFast2 and most plan sponsors are pleased with its simplicity and efficiency. In future years your plan's filings will be even easier, because the filing you do for this plan year will serve as a 'template' for filings in the years to come.
401k plans with fewer than 100 participants file the simplified Form 5500-SF. The IRS has simplified the Form 5500-SF by eliminating a number of questions, calculations and attachments required by older version pension filing forms.
All 401k plan sponsors are now required to use the US Department of Labor eFast2 website to register and file the 5500-SF.
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Use the following information together with the Instructions for Form 5500-SF provided by the DOL to complete the form.
According to the Form 5500-SF Instructions, one-participant plans need only complete the following questions on the form:
Part I & Part II
Part I, Annual Report Identification Information
See the Form 5500-SF Instructions for Line A to determine whether your plan is a single-employer plan (most plans are single-employer plans), a multiple-employer plan, or a multi-employer plan. In addition, select the one-participant box if appropriate. Select applicable boxes in Lines B or C.
Part II, Basic Plan Information
Part III, Financial Information
Part IV & Part V
Part IV, Plan Characteristics
Part V, Compliance Questions
According to the Form 5500-SF Instructions, one-participant plans should complete only question 10g.
If you have a multi-participant plan answer all of the Compliance Questions and provide the amounts for any of the questions that you have answered "Yes."
Part VI & Part VII
Part VI, Pension Funding Compliance
Plans with 2-99 eligible employees must also complete a Summary Annual Report and distribute it to employees and/or post it in an employee common area.
If you need to request a time extension to file your Form 5500 and its accompanying Schedules, use Form 5558.
IRS Form 1099-R is used to report taxable distributions from 401k retirement plans. A completed Form 1099-R must be provided to each person who has taken a taxable distribution from the 401k. The 1099-R must be provided to the individual no later than January 31st. In addition, an IRS Form 1096 must be completed and filed with the IRS no later than February 28 if filing using a paper form, or March 31st if filing using an online service.
The following are three examples of low-cost online form filing services that allow you to quickly and easily prepare and file the Form 1099-R and the Form 1096. These services will also mail copies of the forms to each individual who received a taxable distribution from the 401k.