Beginning with December 31, 2009 Form 5500 filings, employee benefit plans sponsored by charitable organizations, under Section 403(b) of the Internal Revenue Code and covered under the Employee Retirement Income Security Act of 1974 (ERISA), will be subject to the same Form 5500 reporting and audit requirements that currently exist for 401(k) retirement plans.
The number of participants in your plan determines whether your organization will be required to file audited financial statements for the plan. “Large” ERISA-covered 403(b) plans (generally plans with 100 or more eligible participants) will be required to file audited financial statements. “Small” 403(b) plans (generally fewer than 100 eligible participants) will be able to use a new Short Form 5500 and will not be required to have an audit of the plan’s financial statements.
For large 403(b) plans, there may be significant challenges in establishing the documentation needed for your first Form 5500 filing and the related audit requirements. The AICPA’s Employee Benefit Plan Audit Quality Center has developed a 10 step guide for organizations to prepare for the upcoming changes “Section 430(b) Retirement Plans ~ Getting Started: Meeting the New Form 5500 Reporting and Audit Requirements.”
Tags: 403(b) plans, form 5500, not for profit taxation virginia