Form 5330 - Electronic Filing (revisited)

Hello All,

As you know, effective 1/1/2024 most employers are required to file Form 5330 electronically using the IRS Modernized e-File (MeF) System through an Authorized e-file Provider (AEP).  The IRS has a listing of AEPs on its website (even though the link says individuals, it’s for individuals and businesses):

https://www.irs.gov/e-file-providers/authorized-irs-e-file-providers-for-individuals

I've contacted some of those listed and they actually are NOT registered to file Form 5330.  I've also contacted some mid-size and large accounting firms and TPA firms we work with as well as Empower and have found that while they are set up to file as an AEP, they are NOT registered for Form 5330.  According to Empower, they are ultimately going to be able to file, but there is no ETA at this time.

I’m struggling to advise clients how to file electronically other than contacting one of these random providers.  I can’t find anything online addressing the practicalities of this or whether the IRS is even really ready to accept these electronically.  However, per the 5330 instructions, if a paper return is filed when electronic is required, the return will be considered as not filed by IRS.

Right now, I have two clients who need to file, one of which is a $1.7B plan.  I can't tell them to go to the nearest H&R Block listed on the IRS website (which probably is not even registered for 5330).  

What am I missing here?  What is everybody else doing?  Any help is appreciated!

Do you have a 5500 form filing software provider, such as FT William or whoever? If so, have you contacted them to see if they are approved, and if/how you can sign up for the "module" or whatever?

I have not encountered this yet, so thank you for bringing it up!

Update - I got a response already from FT William's wonderful support folks. They are actively working on this, and will be an authorized provider, but do not yet have a specific release date.

This change is a real PITA issue for people who need to Form 5330.  If you look at the Final Regs that came out regarding the new electronic filing requirement for Form 5330, you will see that we must use an authorized MeF filer.   It appears that there is currently one approved electronic filer for Form 5330 at this time. They offer two options 1) buy their software or 2) pay them to do the filing.  Mandatory Electronic Filing for Certain Form 5330 Filers Using the IRS Modernized e-File System (MeF) | Internal Revenue Service.

Well, this is for tax year ending on or after 12/31/2023. Agreed it is a PITA. But there's some time, although not that much, before they are actually due, and hopefully it isn't a high-volume item for your client base. Our thought, off the cuff at the moment, is to send them out, have client sign them and return to us, and by the time they are due, there will hopefully be providers that are ready. I feel pretty confident that there will be reputable organizations that will be ready in time.

I might change my tune as we consider more fully.

Jill R. 

Can you please give me the name of the one provider set up to file?

Thank you!

I linked to it above, but here is the direct link (hopefully the list will increase). Tax Year 2022 Other Tax Exempt Entities Modernized e-File (MeF) Providers – Form 5330 | Internal Revenue Service (irs.gov)  

Thank you, Jill!

On 3/15/2024 at 9:25 AM, Belgarath said:

Update - I got a response already from FT William's wonderful support folks. They are actively working on this, and will be an authorized provider, but do not yet have a specific release date.

I just reconfirmed this information today with FT.  

At this time it seems that their system will be able to file a 5330 only. 

Is anyone aware of how the filing process will be coordinated with the actual payment of the excise tax?

Thank you.

We had one where we sent paper copy to plan sponsor to sign, file and send check.  It was for $109.  They would have over 10 e-filings with W-2s if you count every one.  We might wait to see what FIS has in June/July and then e-file at that time even though it will have been paper-filed already.  The amount is so small, we figured what is the worst thing that can happen?  (Don't tell me it's some large daily accumulating penalty for not e-filing when the amount of the penalty is de minimis!)

Has anyone tried filing an administrative waiver for undue hardship? 

The instructions on the form state "On a year-by-year and form-by-form basis, the IRS may waive the requirement to file Form 5330 electronically in cases of undue hardship. In certain circumstances, a filer may be administratively exempt from the requirement to file electronically. If the IRS's systems do not support electronic filing, the filer will not be required to file electronically. The filer should maintain documentation supporting their undue hardship or other applicable reason for not filing electronically in the filer's records. For more information about mandatory electronic filing based on the 10-return threshold, waivers, and exemptions, see Regulations section 54.6011-3."