The Form 5500 series is a reporting and disclosure tool used to satisfy annual reporting requirements for the Employee Retirement Income Security Act (ERISA) and Internal Revenue Code. Form 5500 provides federal agencies with information regarding the operation.
Every year, as the July 31st deadline approaches, all 401K subscribers go through a mandatory process of filing Form 5500 on behalf of their company. In turn, plan sponsors reach out to third-party administrators (TPA) and their plan providers for support in completing the regulatory reporting requirement.
This is a busy time for TPAs and plan providers as they have to balance their existing workload with this additional seasonal work and sometimes re-tasking their existing talent can be a challenge. At this crucial juncture, associating with the right partner can make all the difference.
The 401k plan process is highly regulated in the US market, and there are various rules and regulations that need to be maintained. Hence, there are many challenges associated with the process of filing Form 5500.
- It is seasonal work, so it may be expensive for companies to hire extra employees only for this one time job every year.
- It is time-bound; so, the speed of work is of utmost importance.
- It should be an accurate, error-free work, so employees should be trained well in the preparation process.
Given the above conditions, it becomes difficult for companies to complete the tasks on time, as they have a finite set of employees to handle new and existing business and also take on the additional workload of preparing and filing the Form 5500. Hence, it becomes a matter of prioritizing and partnering.
This is where Congruent Solutions comes into the picture. Congruent Solutions is a specialist outsourced plan administration services provider to Plan Providers, Recordkeepers, and TPAs. We help them prepare the 5500 forms along with a host of other services we provide.
Congruent has a team of trained resources who have undergone a high level of training in 401k administration and acts as an extended arm for our clients, helping them manage their complete Form 5500 preparation in an efficient and error-free manner.
Our able team not only manages the Form 5500 preparation but also can help you meet the deadline well within time, without any errors. Due to this timely intervention, our clients can focus on acquiring new business as well as and providing excellent, uninterrupted care to existing customers.
If you want help in preparing Form 5500s for your sponsors, please mail us at info@cspl.com.
Also read the top common errors that occur in Form 5500 preparation.
