Stay Informed! Changes to Note on the Form 5500 for 2016
The Department of Labor (DOL), Internal Revenue Service (IRS), and the Pension Benefit Guaranty Corporation (PBGC) have recently released copies of the Form 5500, Form 5500-SF and related schedules for the 2016 tax year. Overall the form structure and content remain similar however with a few slight changes. The “changes to note” section highlights four key modifications:
| IRS compliance questions |
| Administrative penalties |
| Schedules H and I |
| Schedule SB |
IRS compliance questions
Although the line items appear, the IRS decided not to require certain information to be entered on the form such as:
“Preparer Information”
at the bottom
of the first page
Questions included on schedules H and I, Lines 4o and 6a through 6d
Questions included on schedule R,
Part VII
Administrative penalties
The new maximum penalty for a plan administrator who refuses to file or fails to file a complete or accurate return has been increased to $2,063 per day (previously only $1,100 per day). Additionally under the Inflation Adjustment Act, starting in 2017 it is anticipated that the DOL will be adjusting the penalty amounts annually for inflation by January 15th of every year.
Schedules H and I
Line 5c is modified. For those indicating that their defined benefit plan is covered by the PBGC insurance program, a follow up question is added to indicate the My PAA-generated confirmation number for the PBGC premium filing for the plan year.
Schedule SB
Updated for guidance issued in the Cooperative and Small Employer Charity Pension Flexibility Act, Pub. L. No.113-97 (CSEC Act).
Additional Resource
A copy of the 2016 Form 5500 for informational purposes only (not available for filing) can be accessed at the DOL’s Employee Benefits Security Administration website. Additionally, assistance with further information is available on the DOL’s website at www.dol.gov/ebsa in two guides:
- The Quick Reference Chart of Form 5500 Schedules and Attachments
- Troubleshooters Guide to Filing the ERISA Annual Reports
If you need more information regarding this or any other topic affecting your retirement plan, contact us at [email protected] or fill in the form below to arrange a free consultation today.
To ensure compliance with U.S. Treasury rules, unless expressly stated otherwise, any U.S. tax advice contained in this communication is not intended or written to be used, and cannot be used, by the recipient for the purpose of avoiding penalties that may be imposed under the Internal Revenue Code.
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