plans for extra month extension repelaed

[Tom Poje]

oh well....

Congress Repeals Automatic 3-1/2 Month Extension for Form 5500

"The conference agreement repeals the provision in the Surface Transportation and Veterans Health Care Choice Improvement Act of 2015 that provides for an automatic 3-1/2 month extension of the due date for filing Form 5500 [which would have applied to plan years beginning in 2016]. Thus, the extended due date for Form 5500 is determined under DOL and IRS rules as in effect before enactment of the Surface Transportation and Veterans Health Care Choice Improvement Act of 2015." [The Form 5500 provision is discussed at pp. 536-38 of the 555-page conference report. The conference report was agreed upon on December 3, 2015. It has not yet been signed into law by President Obama.] (114th Congress)

[Bird]

ASPPA took credit for this. Reading the brief on this, there was apparently a groundswell of opposition from ASPPA members:

ASPPA members, after learning of this deadline change, voiced concern that the new Form 5500 extended due date would create serious workflow problems for them. For example, safe harbor 401(k) notices are due 30 to 90 days before a new plan year begins. Plan design and investment changes are also an important topic of discussion ahead of a new year. If an investment change is made, a “blackout” notice may have to be prepared as well. Finally, many firms use the year-end months to further develop their business. Adding an additional month to the deadline would create unnecessary conflicts with this year-end work without any real benefit to any interested party.

[Doghouse]

While I understand the rationale of the repeal, I'm not quite sure how the new 5500 "unextended" extended deadline of 10/15 will coordinate with the new C Corp extended tax filing date of 10/15. Doesn't leave much time to finalize contributions for the 5500. Also, assume that those corporate taxpayers who rely on extended corporate tax filing deadline to automatically extend 5500 will now extend to 11/15?

[Bill Presson]

Sole proprietors have always had a 10/15 filing date and calculations have been done without issue in the past.

Not sure I understand the corporate extension to 11/15 that you reference.

[Doghouse]

That's cuz I meant 10/15.