Can we please simplify 401k Plans a teeny bit?
Proposed legislation is on the horizon, which we like a lot! It is HR 7362, the “Form 5500 Filing Simplification Act”. It has bi-partisan support and will likely (eventually) pass.
It would accomplish two things:
- Extend the deadline for filing the Form 5500 (annual tax return for retirement plans) to October 15, rather than the current due date of July 31. (This assumes a Calendar Plan Year).
- Have government agencies (IRS/DOL/PBGC) allow for simplified e-signatures.
This is a great (albeit, overdue) idea! The current system requires us to get an extension of time, which is very common and always approved. As one of the Bill’s sponsors said, the current system “wastes time and causes unnecessary headaches. “
No one is against this, but it will take some time for a (legislative) vehicle to develop that this can be attached to. We’ll keep you posted.
