SAR due date for extended 5500 filed by original due date

Just a curiosity.

Plan had an extension filed, and lo and behold they filed 5500 by original due date, with form indicating 5558 had been filed.

Not that this is a particularly important question, but would the SAR due date be 2 months after original due date, or after extended due date?

There is no reference to the date of the actual filing of the 5500 in the reg.  The reg is clear that if there is a valid extension (i.e., the extension was requested before the original due date) then the SAR is due 2 months from the end of the extension period.  For a calendar year plan, this is December 15th.

ERISA § 2520.104b-10(c) reads:

When to furnish. Except as otherwise provided in this paragraph (c), the summary annual report required by paragraph (a) of this section shall be furnished within nine months after the close of the plan year.

(1) In the case of a welfare plan described in § 2520.104-43 of this part, such furnishing shall take place within 9 months after the close of the fiscal year of the trust or other entity which files the annual report under § 2520.104a-6 of this part.

(2) 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.

20 hours ago, Paul I said:

if there is a valid extension

I don't have a strong opinion either way, but I seem to recall much discussion in this forum if an extension is considered valid when a filing is ultimately made by the original due date.

Question - have you ever had a SAR filing date questioned by a regulatory authority or their auditor/investigator? I frankly can't imagine this being an issue in this situation. Wouldn't cause me any sleepless nights, at least...😁

On 7/31/2024 at 10:19 AM, CuseFan said:

I don't have a strong opinion either way, but I seem to recall much discussion in this forum if an extension is considered valid when a filing is ultimately made by the original due date.

We did actually have one client question why we did not file an extension even though they timely filed their 5500 just so they would have the extended notice period.  That was a while back and I hadn't thought of that until this question came up.  Cuse does bring up an interesting point.

An advantage of getting an extension of the time for filing a Form 5500 report (even if the plan’s administrator believes none of the extra time will be used) is setting up a delay about when one must deliver the summary annual report.

Some administrators prefer to bunch all yearly communications into one delivery.

Imagine a calendar-year plan that delivers in November or by December 1:

•     summary annual report (for the year ended almost a year ago),

•     revised summary plan description or summary of material modifications,

•     401(k)/(m) safe harbor notice,

•     notice of automatic contribution arrangements,

•     notice of qualified default investment alternative,

•     notice about diversifying out of employer securities, and

•     rule 404a-5 information about account fees and investment expenses.

Some might question whether bunching this many communications is appropriate disclosure. But for a plan that has a meaningful number of people who get paper, rather than electronic, disclosures, the efficiencies and expense savings might make this prudent.

Peter, that was exactly the reason behind the request from my client.  They wanted to combine the SAR with the their year end notices.  I believe Belgarath's common sense approach has merit, but have you any knowledge of Cuse's concern regarding filing before the deadline causing the extension to be considered invalid?  Or is this such a small issue not worth the worry?  Thanks.

42 minutes ago, Gilmore said:

Cuse's concern

I found the prior discussion and (1) it was related to tax returns and the deductibility of a contribution made by an extended due date on a return filed by the original due date, and (2) there was a revenue ruling or PLR cited where the deduction was allowed and so the extension was not invalidated. So my memory of the question was correct, or at least related, my recollection of the resolution was not - therefore, I think there is not issue following that course of action regarding 5500 extensions, filings and SAR timing.

While my observation is limited by situations my clients have told me about, I never heard that an EBSA investigator asserted that a summary annual report was untimely because filing the Form 5500 report by its unextended due date meant there was no extension of the time for delivering the related SAR.

Thank you for the follow up Cuse and Peter.  Seems like a non-issue but anytime there is the potential for big penalties it's at least worth discussing.