The DOL, IRS and PBGC have released informational copies of the 2021 Form 5500 series, including schedules and instructions. The 2021 instructions include certain changes proposed by the DOL in September 2021 and are now finalized.
The updates incorporate changes from the SECURE Act and make changes designed to improve financial reporting, collect additional funding information from PBGC-covered defined benefit plans, and simplify compliance for certain smaller defined contribution plans. Highlights of the changes include a combined reporting by defined contribution groups (DCGs) using a single aggregated form 5500 with plan information reported on new Schedule DCG; a new Schedule MEP for Multiple Employer Plans to report plan information; expanded availability to use simplified Form 5500 reporting on participant counting for “small plans” based on the number of participant account balances instead of eligible participants; standardized schedules of investment assets and added questions to collect information about plans’ trusts and trustees; and additional compliance questions to include nondiscrimination and coverage testing, 401(k) plan testing and use of design-based safe harbors as well as whether the plan uses a preapproved document.
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