5500s and Plan Year Change

[Guest YBrunson]

What steps are needed to change the plan year for various welfare plans (health, life, LTD). Can you file a long year 5500?

[KIP KRAUS]

I have done this in the past and the IRS insisted that we file a short plan year and then file for the new plan year. Of course, that could just be the requirements of the particular IRS office I dealt with. If you don't file the short plan year, you'll receive a late filing notice.

If you have the number for the IRS service where you file your 5500s I'd suggest calling them.

[Guest derek]

Kip is right. You can't have a plan year that is longer than 12 months so you will have to file a short year or "stub" period return. Make sure that you are careful in distinguishing a plan year change versus a contract year change for a particular insurance carrier. The contract year (established with the carrier) is not always the same as the plan year (established by the plan sponsor). If you have merely changed insurance carriers and thus have a new contract year for your insurance coverage, then you probably don't have a plan year change.

[This message has been edited by derek (edited 11-09-98).]