Mastering Form 5500 Schedule H: Avoiding Audit Triggers

Description

In 2016 the IRS, Department of Labor, and the PBGC proposed sweeping changes to the regulations governing the annual reporting of employee benefit plans on Form 5500. Among the key components of the proposed changes are a major increase in the number of plans that must file, and significant expansion of plan information disclosure requirements.

One change that will impact many plans is the expansion of disclosures on Schedule H, one of the most complex schedules in the EBP reporting regime. The Schedule currently requires employers with more than 100 employees maintaining a benefit plan to report the financial position of all funds and investments, and in the future may include a series of complicated Compliance Questions on Part IV. The proposed changes may expand the categories of asset classifications, as well as increasing the scope of the compliance questions.

The proposed changes also anticipate adding new schedules and narrowing the exemptions for small plans to report on Form 5500-SF. These revisions will result in an increased use of Form 5500 as a compliance tool by the IRS, DOL and PBGC. While comments to the proposed changes are still under review, both the IRS and DOL are advising plan sponsors and employers to prepare for expanded reporting of financial positions.

Listen as our experienced panel provides a thorough and practical guide to mastering Form 5500, with a specific emphasis on Schedule H Financial Reporting for Employee Benefit Plans, as well as the impact of proposed changes to Form 5500 filing requirements.