How long must a company hold onto their 5500 copies?

[Guest W. Blake]

Just a the question posed - How long does a company need to keep copies of their Form 5500? Thanks!

[WDIK]

If the Schedule P has been filed the limitation on assessment and collection under Code Section 6501(a) is three years.

As a practical matter, however, I have found it helpful to keep copies of the returns and other valuation materials for substantially longer.

[Guest W. Blake]

So, they have to keep it for three, but it is wise to keep them longer. Thanks for the info!

[Guest Pensions in Paradise]

ERISA Section 107 requires the plan administrator to keep records for six years.

[WDIK]

Isn't there an exception to the section 107 requirement for small plans (under 100 participants) and welfare plans?

[Belgarath]

WDIK - I don't read it that way. Section 107 says that every person subject to the filing requirement, "...or who would be subject to such a requirement but for an exemption or simplified reporting requirement undre section 104(a)(2) or (3) of this title..." has to retain the records for 6 years.

And I agree with you that as a practical matter, the amount of time they should keep records is much longer than the required time. We recommend that our clients (small plans, so the records don't take up THAT much space) keep everything forever.

[WDIK]

After rereading the statute and reviewing the posts, I am in agreement with Belgarath and Pensions in Paradise.

[No Name]

Yeah, I saw it in print (I think from an IRS quote) that "forever" is the correct answer.

Darned if I can remember when or where I saw it, but it was within the last year.

[Guest JimChad]

Since the IRS has been known to require corrections for as far back as you have records, it may be wise to dispose of records after 7 years. We keep distribution records forever so that if a Participant comes back later asking for their money, we can show it was paid out. The rest we shred after 7 years.

This is what we do, but to quote a famous American "what do I know?"

[mbozek]

How about forever (or until 3yrs after plan is terminated) in case the IRS claims at some future date that there is no record that a 5500 was filed. IRS has on occasion filed notices of back income taxes for years beyond s/l on the grounds that it has no record a return was filed. Taxpayers can defend against such a claim by producing a copy of the return that was filed.

[david rigby]

Some good commentary on this topic:

http://www.mhco.com/Commentary/2005/Record...uide_072105.htm

[toubitax]

So what is the answer? 3,6 or forever? Or should I call DOL and ask?

[GMK]

See post #10

[My 2 cents]

See post #10

Does filing on EFAST preserve, indefinitely, the 5500 as filed? Or do they drop them out after x years?

[GMK]

^I believe that the employer must retain the records, like a signed copy of each 5500, not?

(I don't know if EFAST keeps copies forever, but I wouldn't count on it for our plans.)

This has some interesting comments:

http://www.employeebenefitsupdate.com/benefits-law-update/2012/9/27/retention-of-records-for-employee-benefit-plans-how-long-is.html