Each Monday 401kBasics posts a new tip as a part of our series “Plan Sponsor Quick Tips”. This series is designed to assist plan sponsors in filling their fiduciary role and running their retirement plan efficiently. Your feedback or suggestions on future articles is welcome.
Over the next few weeks 401kBasics is going to review the common mistakes that plan sponsors make in administering their plan, how to find the mistake and how to correct the mistake. The twelfth common mistake is failure to check if you have filed a form 5500 series return and distributed a Summary Annual Report (SAR) to all plan participants in the respective year.
- How to Find the Mistake: Find your signed copy of the return and determine if you filed it.
- How to Fix the Mistake: File all delinquent returns. Form 5500 filers, see DFVC ->DOL website. Form 5500-EZ filers must file and ask for abatement of penalties.
This mistake can be avoided in the future by understanding your filing requirement and knowing who filed and when. Don’t assume someone is taking care of it for you. For more information please refer to potential mistake number 12 on the IRS 401(k) Fix-It Guide.
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