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Plan Sponsor & Plan Name Changes - 5500 - "accrued or cash"


TPApril

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Plan Sponsor changes its name and its plan's name as of 7/1.  5500 for prior 12/31 has not yet been filed. I'm wondering which is the best set of names to file with - the prior which were in effect as of 12/31, or the current in effect as of signing date?

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Consider using the plan’s and its sponsor’s names as in effect when the administrator approves the Form 5500 report.

To show the continuation and avoid a confusion, the Form 5500 Instructions specify a reporting for this:

Part II Line 1a:  “. . . . If the plan has changed its name from the prior year filing(s), complete line 4 to indicate that the plan was previously identified by a different name.”

“Line 4. If the plan sponsor’s or DFE’s name and/or EIN [has or] have changed or the plan name has changed since the last return/report was filed for this plan or DFE, enter the plan sponsor’s or DFE’s name, EIN, the plan name, and the plan number as it appeared on the last return/report filed.”

https://www.dol.gov/sites/dolgov/files/EBSA/employers-and-advisers/plan-administration-and-compliance/reporting-and-filing/form-5500/2021-instructions.pdf

Peter Gulia PC

Fiduciary Guidance Counsel

Philadelphia, Pennsylvania

215-732-1552

Peter@FiduciaryGuidanceCounsel.com

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1 hour ago, Peter Gulia said:

Consider using the plan’s and its sponsor’s names as in effect when the administrator approves the Form 5500 report.

You mean, use the new name?  I disagree. I'd use the name in effect on the last day of the year. If the 5500 had been filed on 6/30, there would have been  "consideration" of the issue, and I see no reason for that to change based on the filing date.

Ed Snyder

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As I said, “Consider . . . .”.

Practitioners and plans’ administrators have differing views, with some preferring to show the current identifying information, and others using the identifying information as it was on the last day of the year reported on.

If the plan’s administrator prefers to show the current identifying information, the form has an element designed to report also the preceding information so EBSA and IRS are not confused.

Peter Gulia PC

Fiduciary Guidance Counsel

Philadelphia, Pennsylvania

215-732-1552

Peter@FiduciaryGuidanceCounsel.com

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Also, is it essentially the same entity but with a new name and EIN, hence "meet the new boss, same as the old boss"? That is, the person signing for the new boss is/was also authorized to sign for the old boss? If so, then there are probably no issues following Bird's flight, but if this is a change in ownership, officers, those authorized to sign for employer and plan administrator, etc. then there may not be a choice but to have the new boss sign because he is not the same as the old boss.

We run into similar issues - acquire an entity and assume sponsorship of their plan after the PYE but prior to the filing due date. So as of 12/31/YY the plan sponsor is Their Bank but when the filing gets made 7/31/YY+1 or 10/15/YY+1, the sponsor is Our Bank, Their Bank no longer exists and the person who signed for Their Bank is no longer around, or at least no longer authorized in that capacity.

Kenneth M. Prell, CEBS, ERPA

Vice President, BPAS Actuarial & Pension Services

kprell@bpas.com

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I have not gone back to the instructions, but based on Peter's excerpts it seems possible to interpret this as saying "if the name has changed [during the reporting year]." i would probably not change it or complete Line 4 until the 5500 for the year in which the change occurred.

Luke Bailey

Senior Counsel

Clark Hill PLC

214-651-4572 (O) | LBailey@clarkhill.com

2600 Dallas Parkway Suite 600

Frisco, TX 75034

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I feel like you could go either way.

I called the 5500 IRS help line, which I seldom call. Interestingly, they answered quickly, and after reading to me the instructions, which I didn't need read to me, the first person even transferred me to a second person. Essentially though I got a stock answer - whatever was in effect during the plan year is what you would file. So the implication was to use the information in effect as of 12/31, not as of the signing date.

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