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Summary Annual Report

Published by Kim Moore on Jun 19, 2020 6:00:00 AM

Once you have completed work on your 401(k) Plan Audit, reviewed the Form 5500 and filed it on the EFAST website, you probably thought the year-end activities for the Plan were completed. Not so fast! There is one additional step that is required: distributing the Plan’s Summary Annual Report. You may be wondering what this document is and why you have to spend time on it. The Summary Annual Report is a short document with a prescribed format dictated by the Department of Labor.  This report is created after the Form 5500 is completed as much of the information comes directly from data in the 5500. Your summary report will include:

  • The Plan Name.
  • Employer Identification Number (EIN).
  • The Plan number.Summary annual report_16374
  • Some high-level financial information.
  • Provides details of a participant’s rights to receive additional specific information relative to the Plan.
  • The official office of the Plan in case a participant wishes to request the specified information.

The required Annual Summary Report is to be distributed to all Plan participants within 9 months of the Plan’s year-end. Failure to distribute this report is considered an administrative error that may result in fines and the possibility of criminal action by the DOL in the case of willful noncompliance.

Before you distribute the Summary Annual Report it’s recommended that you review it to make sure the report is accurate.  Review and compare the information contained in the report to Form 5500. You should not identify any differences. However, if you do have questions, reach out to your service provider for assistance.

Also, note that the delivery requirements related to certain DOL notices have recently changed. Please reference our recent blog post on this change. 

Will you need an Audit soon? At Summit CPA we specialize in retirement plan audits. We have the ability to offer assistance entirely off-site with little or no distraction to your daily office routine.  We also offer flat-fee pricing so there are no surprises on your bill when the job is complete. For assistance contact our office at (866) 497-9761 to schedule an appointment.Get a FREE 401k Audit Consultation

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