Compliance Corner

Retirement Updates

IRS Announces Revisions to Form 5300

June 07, 2022

On May 25, 2022, the IRS announced that it will revise Form 5300, Application for Determination for Employee Benefit Plan, and its instructions. The revisions will allow plans to submit the form electronically.

Form 5300 is used to request a determination letter from the IRS for the initial qualification of a defined benefit or a defined contribution plan and the exempt status of any related trust. Starting on June 1, 2022, the form can be submitted electronically via Pay.gov, along with a single PDF file (not exceeding 15MB). This PDF must contain the following:

  • Form 2848, Power of Attorney and Declaration of Representative or Form 8821, Tax Information Authorization
  • Prior Determination Letter
  • Opinion/Advisory Letter
  • Cover Letter
  • Amendments (any prior plan documents being submitted along with any applicable amendments)
  • Current Plan Document
  • Adoption Agreement
  • Trust Document
  • Other applicable documents (any additional documents not listed above)

If the total number of documents causes the PDF to exceed the 15MB limit, then documents can be removed from the PDF and faxed separately to the agency. The agency will accept paper forms until June 30, 2022. The user fee for a Form 5300 submitted on or after January 3, 2022, is $2,700 (or $4,000 for multiple employer plans) if the plan does not qualify for the zero-dollar user fee in Notice 2017-1. Applicants must pay the user fee through Pay.gov for an electronic submission using a bank account, credit card or debit card.

Applicants can expect a response to applications within 145 days.

Employers or plans seeking qualification of a defined benefit or a defined contribution plan and the exempt status of any related trust should be aware of this development.

IRS: Employee Plan News, May 25, 2022 ยป