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SAR deadline fun


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Sponsor filed 5500-SF in July, so on time.  

Sponsor could have had the automatic extension due to extended tax return, but didn't need it, and the 5500 doesn't reflect it (after all, why would it, since it was filed on time?)

SAR is due 2 months after the 5500 deadline.

Can that still be 12/15, or does it have to be 9/30 specifically as a result of not checking the automatic extension box on the 5500?

Hmmmm......

--bri

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Here’s the Labor department’s rule: “When an extension of time in which to file an annual report has been granted by the Internal Revenue Service, such furnishing shall take place within 2 months after the close of the period for which the extension was granted.” 29 C.F.R. § 2520.104b-10(c)(2) https://www.ecfr.gov/current/title-29/part-2520/section-2520.104b-10#p-2520.104b-10(c)(2).

A reader of the Form 5500 Instructions might interpret them to suggest an employer/administrator may (and perhaps should) check an extension box if either the plan’s administrator or the employer business organization filed for the extension, even if the employer/administrator has no need to rely on an extension for the Form 5500 report.

BenefitsLink mavens, what do you think about a situation in which the employer corporation obtained an extension for its Federal income tax return but that fact is not shown on the Form 5500 report?

Peter Gulia PC

Fiduciary Guidance Counsel

Philadelphia, Pennsylvania

215-732-1552

Peter@FiduciaryGuidanceCounsel.com

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Just now, Peter Gulia said:

BenefitsLink mavens, what do you think about a situation in which the employer corporation obtained an extension for its Federal income tax return but that fact is not shown on the Form 5500 report?

If you need the additional 2 months for the SAR, amend the 5500 and check the box :) 

 

 

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Ha, I've got the draft all ready to go to everyone, was just kinda curious of how that rule would really be enforced/interpreted (or if it has ever seen in a similar fact pattern).

Thanks all!

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I do not recall ever seeing a plan penalized for a late distribution of s SAR, nor have I seen an explicit corrective action other than to send out the most recent notice.

It is worth observing that there is a push to be able to consolidate multiple disclosures into a single package of disclosures for purposes of distributing to participants, not to mention that unenrolled participants no longer have to get disclosures.

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If the 5500 was filed in July, I don't think you can amend just to check the box that you are filing under an automatic extension.

If you file a 5558 timely and then file the 5500 prior to July 31st the extension would be invalid and would not give a 12/15 due date to distribute the SAR.

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