The IRS Annual Form 5500 must be filed by most health and retirement plans by July 31, every year. Plan sponsoring employers should have drafts of the presentation on hand for review. Certainly an ounce of prevention is worth a pound of cure when it comes to Form 5500.
IRS Form 5500 is an annual tax form that most retirement and medical plans must file each year. Many companies also provide assistance in filling the form. To know more about the procedure for form 5500 preparation, browse online.
If the form is not filled correctly, the government can impose fines of more than $ 2,000 per day late. As such, the stakes are undoubtedly high.
It is also important to ensure that the reports are complete and accurate. When helping clients review their presentation, we often come across numerous mistakes that can be easily avoided.
There is a misconception that Form 5500 belongs to plan service providers who may have prepared the draft, such as outside administrators, records managers, brokers, public accountants, or investment houses.
This is incorrect. Form 5500 is signed under penalty of perjury and filed by the plan sponsor; that is, the company or organization that established and maintains the plan for its employees.
All representations in it are made by the employer, not the entity that could have provided the employer with a draft.
In many cases, the entity preparing the draft does so for hundreds or perhaps thousands of clients and has little or no motivation to ensure that the form is complete or accurate.