Audit Counts - Participants with Balances

Can someone send me a link to the DOL proposal to limit audits to those participants who have balances in the plan?  Apparently there was a comment window that closed in November 2021 or something.  Someone mentioned it to me but I cannot find anything on google.

https://www.federalregister.gov/documents/2021/09/15/2021-19714/proposed-revision-of-annual-information-returnreports

Quote

Update the Form 5500 and 5500-SF and their instructions on counting participants to change the current threshold for determining when a defined contribution plan may file as a small plan, including eligibility for the waiver of the requirement for small plans to have an audit and include the report of an independent qualified public accountant (IQPA) with their annual report. Specifically, instead of using all those eligible to participate, filers generally would look at the number of participants/beneficiaries with account balances as of the beginning of the plan year (the first plan year would use an end of year measure). This proposed change would be reflected in a new line item on the Form 5500 and Form 5500-SF.

I don't think it has been finalized but I believe these are the proposed changes you are referring to which would apply to the 2022 Plan year if finalized..

You bet, that's it!

The rulemaking project remains open. View Rule (reginfo.gov) https://www.reginfo.gov/public/do/eAgendaViewRule?pubId=202110&RIN=1210-AB97

Anyone have any idea when this will actually hit ?They seemed to be discussing it in the ciontext of 2021 5500s?

I've heard a couple of webinars in the past month or so indicating this was something that "didn't make it in" to "Secure 2.0".

Is there anything new regarding the participants on the 5500?

Scanning quickly the House of Representatives’ 582-page report on H.R. 2954, I do not see anything that would, if the legislation is enacted, change the count of participants that determines “large plan” treatment for Form 5500 reports.

This despite two lengthy provisions excusing some notices to “unenrolled participants”.

Also, the bill includes a provision directing the Labor and Treasury departments and the Pension Benefit Guaranty Corporation to “review” reporting and disclosure requirements and report to Congress.

HR 2954 CRPT-117hrpt283.pdf

Well it came from this:

https://www.federalregister.gov/documents/2021/09/15/2021-19714/proposed-revision-of-annual-information-returnreports

Not sure what that means but it was never part of a Bill, but rather a change in a regulation I think. 

Yes, the idea was in a rule-making project.

The agenda I posted three weeks ago shows (as of yesterday) no more activity on that project.

My note yesterday follows Bri’s observation about how some had hoped Congress might do what the Labor department has not done.

I've been saying for a while, 2 reasons  all my clients don;t have eligiblity at 90 days: audit and top-heavy.  Seems to me if you want to see eligiblity expanded you'd fix/address those 2 things.

1 hour ago, Peter Gulia said:

Yes, the idea was in a rule-making project.

The agenda I posted three weeks ago shows (as of yesterday) no more activity on that project.

My note yesterday follows Bri’s observation about how some had hoped Congress might do what the Labor department has not done.

Without going into the who/what/when, there has been work on this in recent years.  As always happens though, the items they/we want to address take a backseat to the items they have to address.  AICPA has reportedly been very vocal in its resistance to this change.  The project is very much alive.

In today’s prepublication release about Form 5500 reports on 2022:

The Agencies are still evaluating public comments on elements of the September 2021 proposal not included in these final forms revisions, including . . . changes in participant counting methodology for Independent Qualified Public Accountant (IQPA) purposes[.]”