Deadline for Summary Annual Reports: What You Need to Know

_{September 18, 2023 by JoyAnswer.org, Category : Finance}

When are summary annual reports due? Find out the deadlines for submitting summary annual reports and ensure compliance with legal requirements for financial reporting in your organization.

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When are summary annual reports due?

Summary Annual Reports (SARs) are required to be distributed to participants and beneficiaries in retirement plans in the United States under the Employee Retirement Income Security Act (ERISA). The deadline for distributing SARs varies depending on the type of retirement plan and the plan's filing deadline for the Form 5500, which is an annual report that provides detailed financial and operational information about the plan.

Here are some key points to know about the deadline for Summary Annual Reports:

Filing Deadline for Form 5500: The deadline for the plan administrator to file the Form 5500 with the Department of Labor (DOL) depends on the type and size of the plan. Small plans (those with fewer than 100 participants at the beginning of the plan year) typically have a filing deadline of the last day of the seventh month after the plan year ends. Large plans (those with 100 or more participants) usually have a filing deadline of the last day of the seventh month after the plan year ends, but they may be eligible for an extension.
SAR Distribution Deadline: The SAR must be distributed to participants and beneficiaries within 9 months after the end of the plan year, or 2 months after the Form 5500 filing deadline, whichever is later. For example, if a small retirement plan's Form 5500 filing deadline is extended, the SAR distribution deadline is also extended accordingly.
Automatic Extension for Form 5500: It's important to note that if the plan administrator requests an automatic extension for filing the Form 5500, the SAR distribution deadline is also automatically extended. In such cases, the SAR must be distributed within 2 months after the extended Form 5500 filing deadline.
Electronic Distribution: In recent years, there has been a push toward electronic distribution of SARs and other plan-related documents. The DOL has issued guidelines allowing for electronic delivery, provided certain conditions are met, including obtaining participant consent for electronic delivery.
Penalties for Noncompliance: Failure to distribute SARs in a timely manner can result in penalties imposed by the DOL. Penalties can vary based on the number of participants affected and the duration of the noncompliance.

It's essential for plan administrators and employers to be aware of these deadlines and comply with the requirements to ensure that participants and beneficiaries receive the required information about their retirement plans in a timely manner. Additionally, it's advisable to stay informed about any changes or updates to ERISA regulations and reporting requirements, as these can evolve over time. Consulting with legal and financial professionals who specialize in employee benefits and retirement plans can be helpful in ensuring compliance with all relevant regulations.

Summary Annual Reports: Understanding Their Due Dates

A Summary Annual Report (SAR) is a summary of the financial and operational information that is contained in a company's Form 5500 filing. SARs are required to be distributed to plan participants and beneficiaries within nine months after the end of the plan year.

For calendar year plans, this means that SARs are due by September 30th. However, plan administrators can file for an extension to December 15th by filing Form 5558 with the Department of Labor (DOL).

Reporting Obligations: When to Submit Summary Annual Reports

Plan administrators are required to distribute SARs to all plan participants and beneficiaries within nine months after the end of the plan year. This includes participants who are no longer actively employed by the company.

SARs can be distributed in a variety of ways, including by mail, email, or hand delivery. Plan administrators are required to choose a distribution method that is reasonably calculated to ensure that all participants and beneficiaries receive their SARs.

Compliance Deadlines: Key Dates for Summary Annual Reports

The following are key dates for Summary Annual Reports:

End of plan year: The end of the plan year is the date on which the plan's financial records are closed for the year.
Nine months after the end of the plan year: This is the deadline for distributing SARs to plan participants and beneficiaries.
December 15th: This is the deadline for filing Form 5558 to request an extension to distribute SARs.

Plan administrators should be aware of these deadlines and take steps to ensure that SARs are distributed on time. Failure to distribute SARs on time can result in penalties from the DOL.

Here are some tips for ensuring that SARs are distributed on time:

Start planning early: The SAR distribution process can take several weeks to complete, so it is important to start planning early. This will give you enough time to gather the necessary information, prepare the SARs, and distribute them to participants and beneficiaries.
Use a reliable distribution method: Choose a distribution method that is reasonably calculated to ensure that all participants and beneficiaries receive their SARs. If you are mailing SARs, be sure to use first class mail and track the packages so that you have proof of delivery.
Keep track of deadlines: Mark your calendar with the key dates for SAR distribution and review them regularly. This will help you to stay on track and avoid missing any deadlines.