RatherBeGolfing

I have always filed using third party software, which produces an AckID for Form 5558 filings. I would still start with EFAST, but be prepared to have to go to the Office of the Chief Accountant.

Im assuming this is not the first year filing a return for the plan, and you filed an SF for the prior year? If so, you can continue to file an SF until you cover more than 120 participants and meet the other eligibility conditions (total of eight conditions). See instructions to the 5500-SF, page 3, Who May File Form 5500-SF, for all conditions.

Sounds like you have an AckID then, so you can prove that it was filed. I would start with EFAST support, but when it comes to issues beyond what can be found in the instructions to the forms, they usually refer you to Office of the Chief Accountant at the DOL at 202/693-8360.

@SSRRS Did you file using third party software (FIS, FTW, etc...)? Did you get an AckID, or did this prevent you from actually getting it filed? While I agree it sounds like an error on their end, it will probably take quite a bit of back and forth to get it resolved.

Without looking I know about 10 in my area, so we actually CAN have a party! 😆

I doubt it. Its more likely that the process is just chaotic and full of issues. It has been since day one.

Agreed, this is EA renewal which has a different cycle and different due dates

Said another way, its incredibly rare to test more than a handful of rates. Everyone in their own group, maximize owner, and 5% to all others is very common (as long as it works for testing of course).

I have also seen an additional issue with EBSAs software. The software looks for accounts with a balance at BOY. It does not catch that if you are filing for the first year, you look at accounts with a balance for EOY to determine if its a large filing or small filing. This is true even if the return first return is indicated on the 5500. It will calculate a penalty capped at $750.

Its likely that no notice is required at all for the SHNEC, so really the only issue is that some participants may have changed their elections for 1/1/26 to get the full match. I could see an argument that they should have a reasonable time to change it less if they want to, but I don't think that is a facts and circumstances argument against the SHNEC. They may defer more in the first pay period than they would have if they had not received a SHN with 4% match. From a compliance perspective, I think they are ok. They may have some upset employees/participants, though.

Agreed. And most documents say that the SHNEC is at least 3%, so you may be able to do 4% for 2026 and 3% for 2027 without the need for amendment.

Editing my initial answer since I misread the question . You are asking if you can amend the plan by 12/31/2025 for a 2026 change from SHM to SHNE? Technically, you can make the change at any point before the plan year starts. A question that could be asked is whether participants will have a reasonable time to make changes to their elections after you amend, and if they are negatively impacted by the change if they do not have reasonable time to change their elections. I think you are fine since you are providing the SHNEC in place of the SHM and participants will not miss out on any of the employer contributions even if they do not have enough time to change their elections for the first payroll. It would be different if you went from 3% SHNEC to 4% match and a participant did not have time to change their election to receive the full 4% match.

Happy Holidays from sunny Florida!

I may or may not have seen some of these manually signed documents due to "issues with electronic signature software" and other similar explanations.

I actually liked Lotus back in the day 🤣.