July 12, 2024
Navigating the complexities of retirement plan reporting just got easier with the latest updates to Form 5500. These transformative changes promise to streamline processes, enhance data accuracy, and significantly reduce administrative burdens for plan administrators and sponsors.
GRF hosted the 2024 Update on Retirement Plans webinar on May 16th, 2024, which delved into significant changes to Form 5500. The session provided a comprehensive overview of the new regulatory requirements. Key highlights include:
Change in Participant Count Methodology: The number of participants with account balances as of the beginning of the plan year will now be used in counting participants, affecting Line 5 and 6 in Form 5500. This change aims to simplify reporting and ensure more accurate data.
Consolidated Form 5500 Reporting: A new reporting option for certain groups of defined contribution (DC) retirement plans has been introduced. To be eligible, the plans must have the same administrator, named fiduciaries, trustee, plan year, and investment options. This aims to streamline reporting and reduce administrative burdens.
Multiple Employer Plans (MEPs) Improvements: Schedule MEP has been added to Form 5500, requiring detailed information about participating employers. This addition enhances transparency and compliance monitoring for MEPs, including Pooled Employer Plans (PEPs).
Additional Schedule H Categories: New categories have been added to the Schedule H breakout of the “Administrative Expenses” category, improving financial reporting for defined benefit plans covered by the PBGC.
Personally Identifiable Information (PII): Form 5500 instructions now emphasize that PII should not be included in filings, as these are publicly available. This measure aims to protect sensitive data and avoid civil penalties. (Learn more about PII).
Stay informed about these changes is essential for effective retirement plan administration.
At GRF, we are dedicated to keeping you informed and compliant with the latest regulatory updates. Our expert team is here to help you navigate these changes and optimize your plan management. Contact us today to ensure your retirement plans are ready for the future.
