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Form 5500 failure to provide info by life insurance co's


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I noticed many life insurance companies fail to provide participant counts on their Schedule A letters. Sometimes there will be a note indicating that information is on file.  Also, some medical carriers will not report covered employee and cobra counts.  In our office, our approach is to obtain this info from either the broker or the plan sponsor themselves, but I've noticed some 5500 preparers will instead leave the item blank and check off "Yes" to failure to provide.

We've always felt it will make the 5500 stand out less if we can answer No, and it doesn't seem that after all these years of these questions that such carriers have adjusted their reporting. It doesn't seem like a big deal to go back to the Plan Sponsor. I'm curious what is done elsewhere.

 

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Good morning -

It is a pain, but I attempt to get the information.  I can't recall if we put "yes" failed to provide or leave blank.  I think it creates an error on our system if leave blank if you answer "no." Its been awhile since I looked at that part of the instructions, but I thought you were supposed to make a good faith attempt to get the information before putting failure to provide. 

 

 

 

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