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What Is a Summary Annual Report for a 401(k) Plan?

Published by Kim Moore on Jul 19, 2021 6:00:00 AM

Form 5500 Deadline

As we are nearing the original deadline for calendar year 401(k) Plans to file their Form 5500 (this deadline is July 31st), you may have received a copy of something called a Summary Annual Report. Your service provider (record-keeper or third-party administrator) may have provided this to you and asked you to distribute it. You may be wondering what this document is and why you have to spend time on it.

Summary Annual Report

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.single_binder_16374-Jul-09-2021-04-28-37-41-AM

The report includes:

  1.  The Plan Name.
  2.  Employer Identification Number (EIN).
  3.  The Plan number.
  4.  Some high-level financial information.
  5.  Provides details of a participant’s rights to receive additional specific information relative to the Plan.
  6.  The official office of the Plan in case a participant wishes to request the specified information.

Required Report

The Summary Annual Report is required to be prepared each year and distributed to all Plan participants within nine months of the Plan year-end. Failure to take this step is an administrative error that can result in fines or criminal action by the DOL in the cases of willful noncompliance.

Do you have questions about your Summary Annual Report? It’s vital that you hire a trusted auditor when it’s time for your plan's audit.Get a FREE 401k Audit Consultation

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.

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