Is a not-for-profit company's 401(k) plan exempt from filing Form 5500?

[Lori Foresz]

Hi,

We have a not for profit company that set up a 401(k) plan. Their administrator told them they are a non-ERISA plan and did not need to file Forms 5500.

I just assumed that if a not for profit set up a 401(k) plan in 2002, they were subject to all the same rules as a regular 401(k) plan including testing and reporting.

Does anyone have any insight?

Please advise.

Thanks

Lori

[Guest kowen]

I'm not aware of an exemption for a not for profit. Is it a church or governmental plan?

[Lori Foresz]

Hi,

It is a boys and girls club that I don't think is related to a church or a government, but I will check. Does that change the requirements?

Thanks for your help!

[Guest kowen]

Governmental and church are not suject to ERISA and do not have to file. I work for a tax exempt organization (not a government or church) with a money purchase plan. We are required to file form 5500.

[E as in ERISA]

Are you sure that they set up a 401(k) and not a 403(b)? The latter would look very similar to a 401(k), but it could be set up as a non-ERISA plan (all the employer does is take the payroll deductions and pass them on).

[mbozek]

Why not read the instructions to the 5500 form. It is available on the IRS web site. The exceptions are stated in the introduction. I dont know of any exeption from filing a 5500 for a non profit qualified plan that is not a govt or religious entity.

[goldtpa]

A client of ours is a local government agency with a money purchase plan. Just brought them into the IRS correction program. They asked for everything. They paid a 750 fine for a minor error.

But based on my experience with this local government, you must file and follow all of the rules just as you would with any other 401(k) client.