Standard for When to Amend 5500?

[SadieJane]

The Instructions to Form 5500 state that an amended return should be filed to correct errors or omissions. In informal guidance or best practice, is there a materiality standard -- i.e., if the error or omission is immaterial, an amended return is not required? I realize this would introduce all sorts of subjectivity, but also hard to believe that DOL would want amended returns for inconsequential errors.

[Belgarath]

IMHO, this is completely in the judgment of the Plan Administrator. Realistically, this will mostly be the judgment of the TPA/Form preparer, because the Plan Administrator is likely to follow the recommendation of the preparer. Some preparers won't even bring a "trivial" error to the attention of the Administrator. And everyone will have their own standards.

For example, if I did a filing for a Welfare plan, and the participant count on one of the Schedule A's was filed as 778, and when preparing the next year's forms, I find it should have been 779, will I prepare an amended filing? He** No!!

On the other hand, if the "Plan Characteristics" codes were incorrect, I'd file an amended return.