Jump to content

Does a plan sponsor have an affirmative legal obligation to correct a mistake a previously filed Form 5500


Pxhesq

Recommended Posts

I anticipate the answer is yes but I am wondering if any one can point me toward a citation that states this. I know the form 5500 instructions require plan sponsor to provide accurate information, but I cant find anything that states it has an affirmative obligation to correct a previously filed 5500 that is inaccurate. 

Link to comment
Share on other sites

13 hours ago, Phoenixlawyer said:

I anticipate the answer is yes but I am wondering if any one can point me toward a citation that states this. I know the form 5500 instructions require plan sponsor to provide accurate information, but I cant find anything that states it has an affirmative obligation to correct a previously filed 5500 that is inaccurate. 

Well, technically, yes. But I do think there's a little room for whether the mistake is material. If it's something with the identification of the plan (EIN or plan number, etc) or the financial information was dramatically off, then I think that should be corrected.

If the ending assets were off by $1 or the employer address had a typo? Then I wouldn't worry so much.

William C. Presson, ERPA, QPA, QKA
bill.presson@gmail.com
C 205.994.4070

 

Link to comment
Share on other sites

In general, there is no requirement to amend a 5500 for inaccurate information.  However, a 5500 is signed under penalties of perjury.  If information at the time the 5500 was submitted was known to the person who signed the 5500 to be inaccurate, then the signer might want to amend the 5500 so as not to be subject to penalties of perjury.  On the other hand, filing a corrected 5500 will restart the statute of limitations from the date the amended 5500 is filed.  Anybody considering amending a 5500, especially for information that was not known at the time of the original submission, should weigh the value of amending against the risk of extending the statute of limitations.

Link to comment
Share on other sites

On ‎10‎/‎16‎/‎2019 at 10:32 AM, Alan Kandel said:

In general, there is no requirement to amend a 5500 for inaccurate information.  However, a 5500 is signed under penalties of perjury.  If information at the time the 5500 was submitted was known to the person who signed the 5500 to be inaccurate, then the signer might want to amend the 5500 so as not to be subject to penalties of perjury.  On the other hand, filing a corrected 5500 will restart the statute of limitations from the date the amended 5500 is filed.  Anybody considering amending a 5500, especially for information that was not known at the time of the original submission, should weigh the value of amending against the risk of extending the statute of limitations.

I am not aware of a statute of limitations for the Form 5500.  Where did you get that from?

Link to comment
Share on other sites

On ‎10‎/‎13‎/‎2019 at 7:02 PM, Pxhesq said:

I anticipate the answer is yes but I am wondering if any one can point me toward a citation that states this. I know the form 5500 instructions require plan sponsor to provide accurate information, but I cant find anything that states it has an affirmative obligation to correct a previously filed 5500 that is inaccurate. 

DOL Reg. Section 2560.502c-2(a)(2) generally states that a failure or refusal to file the [Form 5500] required to be filed under ERISA shall mean a failure or refusal to file, in whole or in part, that information described in ERISA Section 103 and DOL Reg. Section 2520.103-1 et seq., on behalf of the plan at the time and in the manner prescribed therefor.

Link to comment
Share on other sites

Create an account or sign in to comment

You need to be a member in order to leave a comment

Create an account

Sign up for a new account in our community. It's easy!

Register a new account

Sign in

Already have an account? Sign in here.

Sign In Now
×
×
  • Create New...