The U.S. Division of Labor lately issued its third set of finalized varieties revisions to Kind 5500 (Annual Return/Report of Worker Profit Plan) and Kind 5500-SF (Brief Kind Annual Return/Report of Worker Profit Plan). The revisions comply with DOL’s publication of ultimate varieties revisions in 2021 and 2022, and are the final set of ultimate varieties revisions implementing the legislative modifications to SECURE Act. The revisions, along with the directions, are efficient for plan years starting on or after Jan. 1
Amongst different issues, the revisions replace reporting on the Kind 5500 Schedule H to make the monetary info collected on Kind 5500 extra helpful and usable. Particularly, the replace to Schedule H provides new breakout reporting gadgets to the “administrative bills” class of the revenue and bills part of the Schedule H steadiness sheet. The 12 new reporting gadgets embrace “financial institution or belief firm trustee/custodial charges,” “different trustee charges and bills.” and “different bills.” The DOL said that the directions will present that the plan administrator could use any affordable methodology of classifying bills into the suitable classes. In response to earlier suggestions of the American Bankers Affiliation and different trade representatives, the DOL deleted from the ultimate revisions to Kind 5500 proposed questions that might determine the identify of the belief, the belief’s EIN, and the identify and telephone variety of the trustee.
After discussions with ABA workers, DOL has determined to defer motion on extra substantive modifications to Schedule H, corresponding to reporting on hard-to-value property and financial institution collective funding fund investments. ABA has advocated that DOL issue within the suggestions and enter from financial institution trustees and custodians as a part of modernizing Kind 5500 reporting.
