RatherBeGolfing

I agree, your 5500 should reflect the contributions, not the deposits. I would book the earnings in the year of correction. Otherwise you would need to split earnings over both years to be accurate, and I just don't see the point. Just be consistent.

Agreed. Let the referring party know that what they need is an ERISA atty, and that you would be happy to take it on once corrected.

Then no issues with using the forfeiture. In fact, you would probably create an issue if you don't use the forfeiture when available.

You didn't bring it up, but no issues with partial plan term, right? Asking since "this was the only non-key participant"... Assuming forfeiture was proper, I don't see a problem using it to fund the THM.

I'd also add that it was taxable when available to them; they can't escape that by not cashing the check (constructive receipt)

We have had an issue or two with 5500s in FTW over the last couple of months, but nothing that lasted more than 30 minutes to an hour.

No, we haven't had any problems (FTW users), but we file directly, not on behalf of the sponsor with a signed copy. How you file shouldn't matter though, SSL handshake is client/server issue, so its a Datair/EFAST issue. No comment from Datair on this?

@Peter Gulia I think its more nuanced than that. The OP states that if the account balance is less than the distribution fee, the account is forfeited. So its not that the distribution fee results in no net payment, the balance is forfeited instead of being consumed by the distribution fee. I share @BG5150 concern here.

As far as I'm aware, this is not an option. It wouldn't pass edit checks since the IRS logic looks for $0 in EOY assets and no participants at the end of the year for a final 5500.

Does it already allow for elective deferrals or is it just PS at this time?

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! 😆