Exception for a non profit organization filing a Form 5500

[eilano]

Non profit organization client insists that his pension plan is not an ERISA plan and therefore not subject to the Form 5500 filing requirements. We reviewed the prototype plan document and it is a qualified plan. Does anyone know of an exception where a non profit organization is not required to file a Form 5500?

[Mike Preston]

Is he non-profit really a governmental entity? If not, then a 5500 is due.

[mbozek]

Non profit organizations which are religious in nature are exempt from ERISA and filing of 5500s. See instructons to 5500. Only other exemption is for 403(b) plans which permit only salary reduction contributions.

[Lori Foresz]

Hi,

MBozek. I am a bit confused by your last sentence but I am new to the non-profit arena myself.

403(b) plans that contain only salary deferrals may or may not be considered ERISA plans depending on the amount of ER involvment, but I didn't think that whether they were ERISA or non-ERISA plans affected the Form 5500 filing requirement. I thought only church plans were fully exempt from filing.

Am I wrong? Please let me know or else I might get myself in trouble.

Many thanks!

[Ron Snyder]

"Non-profit" is a state law designation that pertains to the form of the entity. "Tax-exempt" is a federal law term used to describe entities that under Federal tax laws are exempt from federal income taxes.

Non-profit entities are not exempt from 5500 filing requirements. Tax-exempt entities may be excluded from the filing requirement if they are governmental or church entities.

IRS' instructions for filing form 5500 are clear with respect to who must file a return.