• FREE RESOURCES
  • PREMIUM CONTENT
        • SEE MORE
          PREMIUM RESOURCES
  • HR DEEP DIVES
        • Coronavirus (COVID-19) Resources for HR Professionals
          Employment Law
          Labor Law Posting Requirements: Everything You Need to Know
          Recruiting
          businesswoman selecting future employees on digital interfaces
          Recruiting Resources for HR & Hiring Managers
          Performance Management
          vector image of young female making star rating
          Performance Review Resources
          Employment Law
          Understanding Equal Employment Opportunity and the EEOC
          Recruiting
          Onboarding Resources for HR & Hiring Managers
  • CORONAVIRUS & HR

  • LOGIN
  • SIGN UP FREE

HR Morning

  • FREE RESOURCES
  • PREMIUM CONTENT
        • SEE MORE
          PREMIUM RESOURCES
  • HR DEEP DIVES
        • Coronavirus (COVID-19) Resources for HR Professionals
          Employment Law
          Labor Law Posting Requirements: Everything You Need to Know
          Recruiting
          businesswoman selecting future employees on digital interfaces
          Recruiting Resources for HR & Hiring Managers
          Performance Management
          vector image of young female making star rating
          Performance Review Resources
          Employment Law
          Understanding Equal Employment Opportunity and the EEOC
          Recruiting
          Onboarding Resources for HR & Hiring Managers
  • CORONAVIRUS & HR
  • Employment Law
  • Benefits
  • Recruiting
  • Talent Management
  • Performance Management
  • HR Technology
  • More
    • Leadership & Strategy
    • Compensation
    • Staff Administration
    • Policy & Procedures
    • Wellness
    • Staff Departure
    • Employee Services
    • Work Location
    • HR Career & Self-Care
    • Health Care
    • Retirement Plans

Heads up: Key changes in Form 5500 for 2014

Jared Bilski
by Jared Bilski
January 28, 2015
2 minute read
  • SHARE ON

Even though you still have plenty of time before filing 2014’s Form 5500, you’ll probably want to take a look at what this year’s form actually includes.

Reason: The DOL included a number of notable changes in the 2014 edition of Form 5500 (for which the agency provided informational copies, schedules and instructions).
The changes are at least in part influenced by the Government Accountability Office (GAO). Early on in 2014, that agency asked the DOL and IRS to change the way certain items are reported on Form 5500 by plan sponsors.
The Form 5500 filings are the feds’ main source for tracking info on retirement plan assets in the private sector.
So the GAO is hoping its recommended changes will result in greater clarity and consistency, specifically in areas such as plan investment info and how service provider fee info is disclosed.

‘Good faith estimate’ required

One of the most significant changes involves multiple employer plans. These plans are now required to include an attachment that identifies the individual workers enrolled in the plans as well as a “good faith estimate” of each employer’s contribution to the plan.
Another key change involves employers with fewer than 100 workers. These firms now must report the number of terminated participants with vested benefits during the course of the filing year when filing Form 5500-SFs.

Big changes for 403(b), pensions

Perhaps the most significant Form 5500 change is one that affects employers with 403(b) plans. For these firms, “Active Participants” must now include any participants who are eligible to contribute to the plan — whether they choose to make contributions to the plan or not.
Many 403(b) plan sponsors had only reported employees who either contributed or received employer contributions as Active Participants on their Form 5500s previously.
That means some firms, when they do a proper count of Active Participants, may have a higher number of Active Participants than what they have actually been reporting on their Form 5500. And, in certain cases, the new number may push some employers into the large plan category, which automatically subjects them to an annual audit.
As for the pension plan impact, single employer sponsors of defined benefit (DB) pension plans will now have to break down their funding target — i.e., the value of all accrued pension benefits for the plan.
The purpose of this breakdown: So that assets can be valued separately for active participants, retired participants or those participants that have been terminated but still have vested benefits under the plan.

Get the latest from HRMorning in your inbox PLUS immediately access 10 FREE HR guides.

I WANT MY FREE GUIDES

Keep Up To Date with the Latest HR News

With HRMorning arriving in your inbox, you will never miss critical stories on labor laws, benefits, retention and onboarding strategies.

Sign up for a free HRMorning membership and get our newsletter!
  • This field is for validation purposes and should be left unchanged.
HR Morning Logo
  • Facebook
  • Twitter
  • Linked In
  • ABOUT HRMORNING
  • ADVERTISE WITH US
  • WRITE FOR US
  • CONTACT
  • Employment Law
  • Benefits
  • Recruiting
  • Talent Management
  • HR Technology
  • Performance Management
  • Leadership & Strategy
  • Compensation & Payroll
  • Policy & Culture
  • Staff Administration
  • Wellness & Safety
  • Staff Departure
  • Employee Services
  • Work Location
  • HR Career & Self-Care

HRMorning, part of the SuccessFuel Network, provides the latest HR and employment law news for HR professionals in the trenches of small-to-medium-sized businesses. Rather than simply regurgitating the day’s headlines, HRMorning delivers actionable insights, helping HR execs understand what HR trends mean to their business.

Privacy Policy Terms of Service
Copyright © 2021 SuccessFuel

WELCOME BACK!

Enter your username and password below to log in

Forget Your Username or Password?

Reset Password

Lost your password? Please enter your username or email address. You will receive a link to create a new password via email.

Log In

During your free trial, you can cancel at any time with a single click on your “Account” page.  It’s that easy.

Why do we need your credit card for a free trial?

We ask for your credit card to allow your subscription to continue should you decide to keep your membership beyond the free trial period.  This prevents any interruption of content access.

Your card will not be charged at any point during your 21 day free trial
and you may cancel at any time during your free trial.

preloader