5500-SF - can I manually mark 5558 box

I sent a 5500-SF to a client for signature.  I suspect the client will sign and send it back to me after 7/31 even though I instructed otherwise.  I plan on filing an extension.  If the client signs the 5500SF that doesn't have the 5558 box X'd in by the software, can I manually fill in the 5558 box on the 5500-SF that he signed?  Or do I need to go back to him and have him sign a new 5500-SF with an X in the 5588 box generated by the software?

Thanks!

The short answer is do not try to manually check the 5558 box on Form 5500-SF and expect it to be acknowledged and accepted.

The Form has to be submitted electronically on EFAST2.  Software vendors build their 5500 programs that create information files in a specific format that is input into the EFAST2 system.  While an image copy of the filing may be attached and submitted concurrently with the electronic filing, EFAST2 will only look at the data in the information file it receives and that will show that no 5558 was filed.  That likely will trigger a late filing notice and you will spend many, many more hours trying to convince the DOL and IRS that the extension was filed timely while also trying to calm down the client who sees the amount of potential penalties.

There are 3 weeks left before the due date.  Inform the client of the need to file timely and of the penalties for late filings.  Also let them know that signing the form takes very little time on their part.  Otherwise, after the you file for the extension and the deadline passes, you will need to send them a new form to sign which basically restarts the signing process.

We all have stories about clients who procrastinate.  We have a client that kept putting of signing the form so we put them on extension.  At 6:30pm on October 15, we tracked them down having dinner at a resort in the Dominican Republic and had them sign the form electronically using their mobile phone.  They never were late again.

A little bit of education and some persistence pays off in terms of time spent by both you and your client.  Hopefully, your client appreciates your work.

If I'm understanding the original question correctly, I believe CDA TPA intends to file a 5558 and mark the 5558 box in the software, but the client has already been provided with a copy of the 5500-SF for manual signature without that box checked. CDA TPA is asking if they can check the 5558 box on the paper copy of the 5500-SF after they receive it back, signed by the plan administrator, before scanning it and attaching the scanned copy to the electronic filing.

I would not advise you to modify a document after it has been signed by the plan administrator in any way. However I would have no problem if the plan administrator manually checked the 5558 box before signing the 5500-SF. As long as all of the data elements on the manually-signed 5500-SF match the electronically-filed 5500-SF then, in my opinion, it is a valid and complete filing. I don't see how it matters whether the "X" in the box on the paper copy was placed there by your 5500 software, or a PDF editor, or a pen in the plan administrator's hand.

It might be easier to send them an updated copy with the box checked, and say "If you don't get form back to us by X date, we will put you on extension and you must sign this attached form instead of the earlier one."

1 hour ago, C. B. Zeller said:

If I'm understanding the original question correctly, I believe CDA TPA intends to file a 5558 and mark the 5558 box in the software, but the client has already been provided with a copy of the 5500-SF for manual signature without that box checked. CDA TPA is asking if they can check the 5558 box on the paper copy of the 5500-SF after they receive it back, signed by the plan administrator, before scanning it and attaching the scanned copy to the electronic filing.

I would not advise you to modify a document after it has been signed by the plan administrator in any way. However I would have no problem if the plan administrator manually checked the 5558 box before signing the 5500-SF. As long as all of the data elements on the manually-signed 5500-SF match the electronically-filed 5500-SF then, in my opinion, it is a valid and complete filing. I don't see how it matters whether the "X" in the box on the paper copy was placed there by your 5500 software, or a PDF editor, or a pen in the plan administrator's hand.

It might be easier to send them an updated copy with the box checked, and say "If you don't get form back to us by X date, we will put you on extension and you must sign this attached form instead of the earlier one."

This is exactly the scenario I'm wondering about.  I'm going to file the 5558 timely and mark the 5558 box on the software's 5500-SF.  I file using the local sign option so I attach the client's signed 5500 to the filing.  I'm proposing to manually fill in the 'Form 5558' box on the client signed, page 1 of the 5500-SF and attach this signed page to the efiled 5500-SF.

Another question... if I file the 5558 but the client returns the signed 5500-SF in time for me to file by 7/31 (1) is there a problem with filing the 5500-SF by 7/31 if I submitted the 5558 and (2) if it's ok to file it by 7/31 but I submitted a 5558, should I mark the box "Form 5558" even if an extension was not needed?

Thank you!

42 minutes ago, CDA TPA said:

I'm proposing to manually fill in the 'Form 5558' box on the client signed, page 1 of the 5500-SF and attach this signed page to the efiled 5500-SF.

I think manually checking the box on the hand-signed copy of the form that gets attached to the e-filing is fine. What I think is a problem is you modifying a document after it has been signed by the plan administrator. Either have the plan administrator check it themselves before they sign it, or send them a new copy with the box already checked.

44 minutes ago, CDA TPA said:

Another question... if I file the 5558 but the client returns the signed 5500-SF in time for me to file by 7/31 (1) is there a problem with filing the 5500-SF by 7/31 if I submitted the 5558

No problem.

44 minutes ago, CDA TPA said:

2) if it's ok to file it by 7/31 but I submitted a 5558, should I mark the box "Form 5558" even if an extension was not needed?

I probably wouldn't but ultimately I don't think it will make a difference.

5 hours ago, C. B. Zeller said:

I think manually checking the box on the hand-signed copy of the form that gets attached to the e-filing is fine. What I think is a problem is you modifying a document after it has been signed by the plan administrator. Either have the plan administrator check it themselves before they sign it, or send them a new copy with the box already checked.

No problem.

I probably wouldn't but ultimately I don't think it will make a difference.

Thank you!