Bill Presson

Because of this confusion, Efast2 is also allowing people to submit the entire audit pdf for each attachment without having to split the individiual items out. Q24a: I only received one file from my IQPA containing both the signed Accountant’s Opinion and the supporting Financial Statements. Do I need to separate this file into the AO Attachment and the Financial Statements Attachment? The EFAST2 system checks that certain attachments required by the Form 5500 Instructions are included in a filing. Attachments must be included using the proper “tag” for the attachment. Ideally each required attachment should be its own file and attached to your electronic filing with the proper “tag.” If you do not include a required attachment or use an incorrect “tag,” you may get an error or warning message from the EFAST2 system that you did not include a required attachment. The EFAST2 Guide for Filers and Service Providers, Appendix E, provides a map of attachments with the “tag” used by EFAST2. The guide is available through the EFAST2 website at www.efast.dol.gov/fip/pubs/EFAST2_Guide_Filers_Service_Providers.pdf. If your IQPA report contains both the signed Accountant’s Opinion and the supporting audit report and financial statements, you do not need to separate the document. You may upload the entire IQPA report into the “AO” Attachment “tag” as a single PDF file. Also, if your Return/Report requires the submission of a Schedule of Assets or a Schedule of Reportable Transactions, you must upload these documents separately into the appropriate attachment “tag.” If you must file both schedules but do not have separate files, you may wish to either: Upload the same combined file into each of the required attachment type tags. You need to be careful doing this though because if your completed Form 5500 is very large (contains upwards of 100 pages of attachments in total), you will likely have difficulty transmitting the filing to EFAST2 due to the total size of the file. Create a separate document with a brief statement that the required Schedule of Assets and/or Schedule of Reportable Transactions is included in the Accountant's audit report attachment, and upload that document where you would otherwise upload the Schedule of Assets and/or Schedule of Reportable Transactions, using the appropriate tag(s) for those attachment(s).

Here's what Janice Wegesin says: Audit Not Ready: Should You File? I get this question a lot. If you were my client, I’d recommend you file by October 15 (or whatever extended due date applies), including an attachment that explains that the audit is not yet ready and that an amended filing will be submitted as soon as the audit can be attached. Also see information included in the DOL’s own FAQs regarding EFAST2 Electronic Filing System. The FAQs are posted at www.efast.dol.gov. Q25: Will the EFAST2 system still receive my filing if I do not attach the IQPA report with my Form 5500 annual return/report when it is required? The EFAST2 system will receive your filing, but submitting the annual return/report without the required IQPA report is an incomplete filing, and the incomplete filing may be subject to further review, correspondence, rejection, and assessment of civil penalties. Also, if you do not submit the required IQPA report, you must still correctly answer the IQPA questions on Schedule H, line 3. This means you must leave lines 3a and 3b blank because the IQPA report is not attached and must also leave line 3d blank because the reason the IQPA reports is not attached (i.e., was not completed on time) is not a reason listed in any of the available check boxes. You should still complete line 3c if you can identify the plan’s IQPA. Please note that failing to include the required IQPA report and leaving parts of line 3 blank, however, will result in the system status indicating that there is an error with your filing because, as noted above, submitting your annual return/report without a required IQPA report is an incomplete filing, and the incomplete filing may be subject to further review, correspondence, rejection, and assessment of civil penalties. Thus, if you find it necessary to file a Form 5500 without the required IQPA report, you must correct that error as soon as possible.

We've had two DOL audits this year on clients and both of the investigators asked to specifically see the statements with the required language.

No that's not what they are saying. Use the same 401(k) that is in existence. You won't create a new 401(k) plan. Just amend (if necessary) the existing plan, get new service providers and create the db plan. If the new service providers the sponsor is choosing didn't suggest this, then they are idiots and should not be used.

Andy, I haven't done a true DB, but we've done several cash balance plans. We haven't had any trouble with the XML so I can't help you with that part. As to the other, make sure you also have filing author credential otherwise you wouldn't have the ability to do anything other than sign. The "add attachments" button should be above and to the left on the screen when you go in to review. It might not appear if the credential isn't accurate. Hope that helps some.

Yep.

Hardships are still subject to the 10% penalty (with a few exceptions), so even if you could treat it that way, it wouldn't likely make a difference.

Cathy, the deferral limit is a calendar year limit, so the employee is allowed to continue her deferrals. Just make sure the employer's payroll has the limit set in their system on a calendar year basis.

Most, if not all, DB plans are in the process of being restated. $1,800 is pretty inexpensive compared to most DB restatement fees that I've seen.

I would recommend getting their answer in writing.

They are your credentials. So modify away.

We do not collect or review beneficiary designations. We have the employer review the forms and maintain the originals in the personnel files. We don't even keep copies and if anyone sends us copies, we shred them.

little glops If you put everything in the single pdf for accountants opinion, you'll get a validation error if you've indicated there are assets held, etc. and there's nothing in the little glop slot. Thank you. Is this an EFAST2 validation error or a Relius error message. If a Relius error message, can Relus still produce an xml file, which will be accepted by EFAST2? Your explanation was my suspicion. The auditors I deal with appear to be anti-glop and also anti-reading DOL instructions. My hardfast position is to maintain integrity of the process I will in no way, shape, or form alter the attachments they send me. Thus, when they have sent me there auditors report and say everyting is there, I go back to them and have asked for little glops. Owing to my pertinacity, they are finding it difficult to sit down after dealing with me. Actually, this is exciting since I feel as if I am returning years of tit-for-tat. More seriously, I believe if I do alter their attachments, then I am looking for trouble if DOL rejects. Well, God Bless You if you get the entire package broken up in the correct piles of glop. We're working to get the auditors in our acctg firm to understand the process, but that doesn't mean the auditors on the plans that we're the TPA for will understand. We're taking a bit more of a practical approach and just doing the necessary surgery on the GLOP pdf to make the little glopules. If the DOL comes after me for it, that's why we hire attorneys.

little glops If you put everything in the single pdf for accountants opinion, you'll get a validation error if you've indicated there are assets held, etc. and there's nothing in the little glop slot.

We've had a few people do this and we recommend they use someone that knows what they are doing. We've had some success with the local office of these guys: http://www.theentrustgroup.com/

If I was a participant that joined the plan sometime in the last 4 years, I don't think I would agree.

What we have clients do and what they do are not always the same thing. The error specifically says the Plan Administrator user id and PIN are missing.

TPAMan is correct and that is likely what happened.

Unless you are using the option for having the client sign a paper form and submitting it as a pdf, there is no need for you to have any credentials at all if you are using web client.

Which is worse? 1. Consistent season long mediocrity? Or 2. Fantastic season play, with a playoff swoon (ala my Sharks?)

He was still young (meaning any age below mine), but he had been retired previously. That's pretty cool.

Hey, I know the guy was an incredible innovator, but I don't think the mask allowed him to play quite that long!

I wasn't trying to call you out. I just meant that it was something I had dealt with a long time ago.

I addressed this issue a long time ago. I got a general information letter from Jim Holland, dated May 7, 1993 that specifically says "Because rollover money is neither a "contribution" nor a "forfeiture", no portion of the rollover money is taken into consideration when determining the amount of premiums that may be used to provide an incidental level of insurance coverage." The question I sent was specifically in relation to using "seasoned" money to purchase life insurance. It's not a Rev. Rul., but I'm pretty comfortable with it.

Interesting. My bad. Wish I had a better answer.