How cumbersome is Electronic filing of the 5500?

[Guest cohenron]

I am trying to determine whether it is worthwhile to file 5500's electronically. As I understand it everything must be filed electronically in acceptable formats, including the accountant's opinion. Does this mean we need to get auditors for the plans filing electronically to send us their reports as Word documents or whatever other acceptable formats are listed? Also, is it true that besides us as transmitters having to file an EFAST-1 that we need one signed and submitted by the trustee (for Schedule P), the plan administrator and plan sponsor (for the 5500 and SSA)? I have gone to the EFAST site and have not found answers to these questions. Finally, as preparer and transmitter should we be the contact person with telephone numbers in Part III of form EFAST-1 or should a representative of the plan sponsor or trustee be the contact?

[Kristina]

You'll find the instructions for the EFAST-1 form under Filing Instructions on the EFAST website. Yes, you, as the transmitter, will have to have an electronic signature as will anyone who signs any part of the 5500 series; Plan Administrator, Plan Sponsor, Trustee and Actuary. The difficulty I see is the coordination of the signatures. The plan administrator and/or sponsor can not sign before they have reviewed the forms, so you must provide them with printed forms for review before they send you their signature file. I would not recommend that you keep their signature files on your computer.

Also, on your application as the transmitter, you must have a contact so that EFAST can contact you if there is a problem with the transmission. Signers can designate an address other than their own for EFAST notices and can designate a contact other than themselves. You and your clients need to decide if you will receive the notices directly or not.