News
Okay, so maybe not everything about the New Year is new, but the DOL does have some news - NO MORE PAPER 5500s! EFAST2 has finally arrived... paper is out.... e-filing is in.
EFAST2 is the Department of Labor’s new fully electronic processing system for Form 5500. Starting with the first 2009 plan year filing, the DOL requires all retirement and welfare benefit plans to file Form 5500 electronically.
So how is this going to happen? Here’s a simple 3 step summary for Plan Sponsors:
1) OBTAIN FILING SIGNER CREDENTIALS
All persons who have signed, or will be signing, the Form 5500 must apply for electronic signer credentials. These credentials are obtained by registering on the EFAST2 website (www.efast.dol.gov), using the I-REG system.
Plan Sponsors will receive a post card from the DOL, likely in mid-January, inviting them to apply for their filing credentials. Then they can log in to I-REG at www.efast.dol.gov and follow a series of input screens. Once complete, the system will assign your electronic credentials, consisting of a User ID & PIN.
2). PREPARE & FILE YOUR RETURN
Your return(s) can be prepared using one of three options:
• I-FILE, the DOL’s web-based filing system;
• A private web-based system; or
• A third-party preparer (like ABV) with Internet transmission to DOL.
The new electronic (i.e., “paperless”) filing requirements are for the government only. This means, you are still required to print a fully-executed (“wet” signature) hard-copy of the return, maintaining it in your permanent plan files. This is a DOL requirement.
Next, you file your return electronically using one of the 3 options above. The option that you choose will be determined by whether or not you are using a third-party company to assist you with your Form 5500 preparation. If you are filing your own returns, you may likely utilize I-FILE on the DOL website.
If a third party like ABV is preparing the return for you, there will likely be what is now called a “signing ceremony”. This ceremony will go something like this: you receive an email from your Form 5500 preparer, with a link to a secure website. Upon activating the link, you will be taken to an electronic version of your return to review & approve. You will then print your hard-copy of the return (for “wet” signature) & then electronically sign the return, by inserting your User ID & PIN.
The system then prompts you for all of this information. You will then either transmit the return yourself (this will be based on the arrangement with your third party vendor) or your signed return will be sent back to your third party vendor who will transmit it on your behalf. If ABV is assisting, we will transmit your return for you. All you will need to do is review, approve and electronically sign your return(s).
Remember, under no circumstance will you be allowed to mail in Form 5500 returns for plan years 2009 & later. If you are still filing 2008 returns (for non-calendar year plan years) then you will sign and mail paper copies to Lawrence KS. However, for all 2009 plan year filings (& later years as well), you will file electronically via EFAST2.
3). VISIT EITHER THE DOL or ABV’s WEBSITE TODAY
Please visit www.efast.dol.gov now & read the section titled, “Getting Ready for Electronic Filing & 2009 Form 5500” for more specific explanations about EFAST2 & the new filing requirements. As things unfold in January, many updates are likely to occur, as the system itself and the new process will evolve over the next several months.
We will be updating the ABV website regularly to add information about specific questions, so please bookmark our site as well (www.abvadvisors.com). Our goal is share the general details on our website and ask that you contact us if you have any questions about your specific situation.