Failure to file Schedule SSA - Appropriate Method of Correction

[Guest rocnrols2]

A company's 401(k) plan has always filed its Forms 5500 on a timely basis. It was discovered, however, that it has almost never filed a Schedule SSA. The reasons given is that the software indicated a 0 for the number of participants who terminated employment with a partially vested benefit.

My question is: how do you correct this? I looked at the instructions for the Schedule and they mention that you can correct information previously reported (or even newly reported). Should this problem be corrected by filing a current Schedule SSA with all past terminated vested participants or should the plan go to the DOL under the Delinquent Filer Voluntary Correction program. I would like to have your thoughts on this.

[Fielding Mellish]

A company's 401(k) plan has always filed its Forms 5500 on a timely basis. It was discovered, however, that it has almost never filed a Schedule SSA. The reasons given is that the software indicated a 0 for the number of participants who terminated employment with a partially vested benefit.

My question is: how do you correct this? I looked at the instructions for the Schedule and they mention that you can correct information previously reported (or even newly reported). Should this problem be corrected by filing a current Schedule SSA with all past terminated vested participants or should the plan go to the DOL under the Delinquent Filer Voluntary Correction program. I would like to have your thoughts on this.

Did you ever figure out an approach to this?

[Tom Poje]

well, the instructions (page 3 PENALTIES) say the penalty is $1/particpant/day multiplied by the number of days the failure continues (max $5,000)

the penalty is imposed on the person failing to file unless it is shown the failure is due to reasonable cause.

so, do you plead before the IRS or do you simply file now and hope for the best...