Important Tax and Regulatory Information

Your resource to find regulatory and supplemental information from National Financial Services LLC (NFS).

Important Tax Information

Understanding the 2016 Form 5500-EZ and Form 5500-SF

National Financial Services LLC (NFS) has prepared this information to help guide you through the forms required for filing Form 5500 for your Premiere Select® Retirement Plan.* NFS acts as agent for Fidelity Management Trust Company (FMTC), the trustee for your retirement account. A Form 5500 is generally required to be filed for each plan you maintain. The federal government may impose penalties for noncompliance with filing regulations. If you have any questions about your filing requirements, please consult your tax advisor, the IRS, or the Employee Benefits Security Administration (EBSA).

Plan administrators for Keoghs, defined benefit plans, corporate pension and profit sharing plans, certain 403(b) plans, and 401(k) plans must generally file a Form 5500 each year. Beginning with tax year 2009, the IRS and the Department of Labor (DOL) made significant changes regarding the Form 5500 filing options and/or requirements that may affect many small business plans.

Every year by April 30, NFS mails and makes viewable online Annual Valuation Statements (AVS). These documents provide comprehensive information on your plan and can help you complete your respective Form 5500. It is important to complete your form carefully, as the federal government may impose penalties for Non-compliance with filing regulations. Consult your tax advisor, the IRS, or the Employee Benefits Security Administration (EBSA) of the DOL with any questions.

There are three types of Form 5500: Form 5500-EZ, for one-participant plans only; Form 5500-SF, for one-participant plans as well as for plans with fewer than 100 participants; and Form 5500, for plans with 100 or more participants.

All Forms 5500, with the exception of Form 5500-EZ, must be filed electronically using the DOL ERISA Filing Acceptance System (EFAST2) . A DOL EFAST help line is available at 1-866-GO EFAST (866-463-3278).

One-participant plans—A one-participant plan covers a business owner with no employees. However, the plan can cover a business owner and his/her spouse, or a business partnership (where the partners and their spouses are the only participants).

If you have a one-participant plan, you have the option of filing either Form 5500-EZ or Form 5500-SF. If you decide to use Form 5500-EZ, it must be filed on paper with the IRS. You can either complete, print, and mail the form available online or obtain a blank paper copy from the IRS. The Form 5500-SF must be filed electronically using the EFAST2 system. For more information, see the Instructions for Form 5500-EZ (PDF) or Instructions for Form 5500-SF (PDF).

In some cases, one-participant plans may not be required to file any 5500 forms. Generally, if the total plan assets are $250,000 or less, you may not need to file. Please refer to the IRS Instructions for Form 5500-EZ (PDF) or Instructions for Form 5500-SF (PDF) for more details on the various criteria that apply.

Plans with fewer than 100 participants—Plans that are not one-participant plans and have fewer than 100 participants will file electronically using Form 5500-SF. For more information, see the Instructions for Form 5500-SF (PDF) or visit the EFAST2 Web site .

Plans with 100 or more participants—Plans with at least 100 participants must file electronically using Form 5500. For more information on completing Form 5500, see the Form 5500 Instructions (PDF) or visit the EFAST2 Web site and/or consult your tax advisor.

For more information on which 5500 forms to use, please see our FAQ, Who should file Forms 5500-EZ, 5500-SF, or 5500 and which form should I file?


Additional Information

Note to employers

If you have not received all plan participant Annual Valuation Statements directly, be sure to obtain them from the individual plan participants.

An annual checkup for your retirement plan

As you prepare your Form 5500 tax filing, it's also a good time to do a checkup of your administrative responsibilities and retirement plan needs. For general information, see our FAQ What are my basic responsibilities as plan administrator?

Other online resources

For detailed Form 5500 information, visit efast.dol.gov for help from the Employee Benefits Security Administration, U.S. Department of Labor.

Annual Valuation Statement

Your Annual Valuation Statement (AVS) provides information which may help you to complete your respective Form 5500. Consult your tax advisor, the IRS, or the Department of Labor (DOL) Employee Benefits Security Administration (EBSA) with any questions.

2016 Retirement Plan Annual Valuation Statement

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Investment Earnings reports total interest, dividends, and other related distributions received in 2016. Changes in account value due to other factors, such as market fluctuation, contributions, and distributions made by the plan, are not reflected.

Distributions report total distributions made by the plan during 2016, whether made directly to the participant (or beneficiary) or as direct rollovers to another plan.

Cash Contributions include only those contributions made to the plan during 2016.

Form 5500-EZ — For single participant plans

Use the following information, together with the instructions for Form 5500-EZ, to complete and file Form 5500-EZ. Administrators who choose to file Form 5500-EZ must mail the paper copy to the IRS. It cannot be submitted electronically. They can either complete, print, and mail the form available online or obtain a blank paper copy from the IRS. For more information, see the Instructions for Form 5500-EZ.


Part I & Part II

Annual Return of One-Participant (Owners and Their Spouses) Retirement Plan

Part I, Annual Return Identification Information

See the Form 5500-EZ Instructions to determine whether you should check any of the boxes in Part I.


Part II, Basic Plan Information

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Enter the formal name of your company retirement plan.

Enter your plan number (for example, your first plan is 001, your second is 002, etc.). You, the employer, assign the plan number.

Enter the effective month, day, and year of the plan. The effective date is generally the first day of the plan year in which the plan was established. If the employer's business was not yet established on that date, the effective date will be the date on which the business was established.

Enter the employer name and address.

Enter your nine-digit Employer (Tax) Identification Number (EIN). If you do not have an EIN currently, please call the IRS at 1-800-829-4933 for information on how to obtain one. Enter the EIN on this form. Do not enter your Social Security Number.

Enter the employer's telephone number.

Enter the appropriate code for business activity from the list on pp. 9 – 11 in the Form 5500-EZ Instructions.

Enter the plan administrator's name and address, etc. If the same as the employer's, enter "same," and leave blank the remainder of 3a, 3b, and 3c.

According to the Form 5500-EZ Instructions, Lines 4a and 4b are optional.

If the name and/or EIN of the employer has changed since the last return, enter the Employer's name, EIN and plan name.

Note that Form 5500-EZ may only be used by one-participant plans that are required to file an annual return, and are not eligible or choose not to file the annual return electronically on Form 5500-SF. See the 5500-EZ Instructions for more information.

Count your spouse (and your partners' spouses) only if they work in the business.


Part III and Part IV

Financial Infomation



Part III Financial Information

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Complete using your own records, your Premiere Select account statements, and your Annual Valuation Statements as appropriate.

Total plan assets include rollovers and transfers from other plans, unrealized gains and losses such as appreciation/depreciation in assets. Your Annual Valuation Statement reports your plan's assets on a cash basis rather than an accrual basis. You may use either method, but should be consistent from year to year. Please consult your tax advisor for guidance.

Plans using cash basis should have no liabilities. Do not include the value of future distributions that will be made to participants.

Include the total cash contributions received by the plan from the employer (line 8a) and the plan participant (line 8b).

Enter the total of all other contributions, including transfers or rollovers received from other plans valued on the date of contribution.


Part IV Plan Characteristics

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If you are filing this report for your Profit Sharing Plan, enter "2E," "2R," and "3D." If you have a 401(k) feature on your Profit Sharing Plan, also enter "2J." If you are filing this report for your Money Purchase Pension Plan, enter "2C," "2R," and "3D." Be sure to refer to p. 8 of the Instructions for Form 5500-EZ to determine what other codes may apply to your plan.


Part V

Compliance and Funding Questions

Part V Compliance and Funding Questions

Answer the questions and provide the dollar amounts, as appropriate.


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If your plan is a Money Purchase Plan, answer "yes" and complete lines 12a or 12b, 12c, 12d, and 12e, as applicable. If you have a Profit Sharing or a Self-Employed 401(k) plan, the answer to question 12 is "no."

Tax Statement FAQs

Form 5500-SF - For plans with less than 100 participants, including most one-participant plans.

Use the following information together with the Instructions for Form 5500-SF provided by the DOL to complete Form 5500-SF.

According to the Form 5500-SF Instructions, one-participant plans need only complete the following questions on the form:

  • Part I, lines A, B, and C
  • Part II, lines 1a - 5b
  • Part III, lines 7a-c, and 8a
  • Part IV, line 9a
  • Part V, line 10g
  • Part VI, lines 11-12e

Part I & Part II

Short Form Annual Return/Report of Small Employee Benefit Plan

Part I, Annual Report Identification Information

See the Form 5500-SF Instructions for Line A to determine whether your plan is a single-employer plan (most Premiere Select® Retirement plans are single-employer plans), (single-employer plans), a multiple-employer plan or a one-participant plan. In addition, select the one-participant box if appropriate. Select applicable boxes in Lines B or C.


Part II, Basic Plan Information

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Enter the formal name of your company retirement plan.

Enter your plan number (for example, your first plan is 001, your second is 002, etc.). You, the employer, assign the plan number.

Enter the effective month, day, and year of the plan. The effective date is generally the first day of the plan year in which the plan was established. If the employer's business was not yet established on that date, the effective date will be the date on which the business was established.

The plan sponsor is the employer offering the plan. Do not enter a National Financial Services LLC (NFS) entity. Enter the employer's name and address.

Enter your nine-digit Employer (Tax) Identification Number (EIN). If you do not have an EIN currently, please call the IRS at 1-800-829-4933 for information on how to obtain one. Enter the EIN on this form. Do not enter your Social Security Number.

Enter the employer's telephone number.

Enter the appropriate business code from the list on pp. 23-25 in the Form 5500-SF Instructions.

Enter the plan administrator name, address, etc. If the same as the employer's, enter "same," and leave blank the remainder of 3a, 3b, and 3c.

See the Form 5500-SF Instructions for a description of a "participant."

If the answers to 6a and 6b are "yes," you may file with Form 5500-SF. See the Form 5500-SF Instructions for further information.


Part III, Financial Information

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Complete using your own records, your Premiere Select account statements, and your Annual Valuation Statements as appropriate.

Your Annual Valuation Statement reports your plan's assets on a cash basis rather than on a modified cash or accrual basis. You must use one method consistently. Please consult your tax advisor for guidance.

Plans using cash basis should have no liabilities.

Include the total cash contributions received by the plan. Report employer contributions on 8a(1), (for self-employed 401(k) plans) participant contributions on 8a(2), and other contributions (including rollovers from other plans) on 8a(3).

Includes investment earnings, net gain or loss from the sale of assets, and other income, such as unrealized appreciation (depreciation) in plan assets. (See the Form 5500-SF Instructions for more details.)

Provide distributions made to, or on behalf of, plan participants, including eligible rollover distributions.


Part IV & Part V

Plan Characteristics

Part IV, Plan Characteristics

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If you are filing this report for your Profit Sharing Plan, enter "2E" and "2G." If you have a 401(k) feature on your Profit Sharing Plan, also enter "2J." If you are filing this report for your Money Purchase Pension Plan, enter "2C" and "2G" in these boxes. Be sure to refer to the Instructions for Form 5500-SF for complete instructions to determine what other codes may apply to your plan.

Leave blank.


Part V, Compliance Questions

According to the Form 5500-SF Instructions, one-participant plans should complete only question 10g.

If you have a multi-participant plan, please answer all of the Compliance Questions and provide the amounts for any of the questions that you have answered "Yes."


Part VI & Part VII

Pension Funding Compliance

Part VI, Pension Funding Compliance

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Unless your plan is a defined benefit plan, select "no."

If your plan is a Money Purchase Plan, answer "yes" and complete the portions of this question which apply to your plan. If you have a Profit Sharing or a Self-Employed 401(k) plan, the answer to question 12 is "no."


Part VII, Trust Information

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According to the Form 5500-SF Instructions, "although Lines 14a and 14b are optional, the IRS encourages filers to provide [their] trust information on these lines."

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Form 5500-EZ — As in past years, "one-participant plan" administrators may continue to use the Form 5500-EZ to satisfy certain annual reporting and filing obligations. A one-participant plan is generally for a business owner (or an owner and his/her spouse, if they are the only participants) or for a business partnership (where the partners and/or their spouses are the only participants). Administrators must file this paper form with the IRS.

You do not have to file a Form 5500-EZ (or Form 5500-SF) for a plan year (other than the final plan year), if you meet the conditions for filing Form 5500-EZ (or Form 5500-SF) and you have one or more one-participant plans that separately or together had total assets of $250,000 or less at the end of that plan year. Please refer to the IRS Instructions for Form 5500-EZ or Instructions for Form 5500-SF for details.

Form 5500-SF — Most small business retirement plans with fewer than 100 participants may complete and file Form 5500-SF electronically. However, only one-participant plan administrators may choose to complete the paper Form 5500-EZ.

Form 5500 — Form 5500 must be completed by plans with 100 or more participants. It may only be completed and filed electronically. For more information on completing Form 5500, consult the Instructions for Form 5500 and/or your tax advisor.

Other filing details:

Employer Identification Number: To file a Form 5500-EZ with the IRS or a Form 5500-SF with the Department of Labor (DOL), Employee Benefits Security Administration (EBSA), you will need an Employer (Tax) Identification Number (EIN). If you do not have an EIN you may:

Forms 5500 and 5500-SF must be filed electronically with the EBSA, not the IRS or National Financial Services LLC (NFS), see the respective instructions for details. A DOL/EBSA EFAST help line is available at 1-866-GO-EFAST (866-463-3278).

Form 5500-EZ must be filed on paper with the IRS using the following mailing address: Department of the Treasury, Internal Revenue Service Center, Ogden, UT 84201-0020. If you are filing for 2016 with Form 5500-EZ, you may only use the official 2016 version of Form 5500-EZ. You may want to mail your 5500 filing by certified or overnight mail for proof of mailing. Refer to the IRS list of approved certified or overnight mail providers in the instructions.

Forms 5500 must generally be filed by the last day of the seventh month following the end of the plan year, unless an extension has been granted. For calendar year plans, the deadline is July 31, 2017.

To obtain a two-and-one-half-month extension, eligible filers may file Form 5558 with the IRS before the due date of their Form 5500. Plans eligible to file Form 5500-EZ are automatically granted an extension for filing Form 5500-EZ until the extended due date of the employer's federal income tax return, provided certain conditions are met. Please refer to the IRS Instructions for Form 5500-EZ for details.

Yes, unless you are eligible to file Form 5500-EZ and the combined assets of all plans were $250,000 or less at the end of the plan year. If, however, you have more than $250,000 in plan assets, a separate Form 5500-SF or Form 5500-EZ should be filed for each plan.

As you prepare your Form 5500 tax filing, it's a good time for an annual checkup of your administrative responsibilities and retirement plan needs.

General plan administrator responsibilities

  • Within 120 days of adopting or amending a plan, give each participant a Summary Plan Description. Retain copies of the plan documents and any plan amendments.
  • Enroll eligible employees
    • Monitor plan eligibility requirements to know when your employees are eligible to participate
    • If you have employees participating in your plan, the employer is generally required to be bonded. You should speak with your tax advisor or legal counsel to determine your bonding requirement. Employees who become eligible to participate must be provided a Summary Plan Description within 90 days.
    • Reminder: A Self-Employed 401(k) plan is available to self-employed individuals or business owners with no employees other than a spouse.
  • File IRS/DOL 5500 series forms (if required)
  • Distribute Summary Annual Report: Distribute to participants and any beneficiaries receiving benefits within nine months of the close of the plan year.
  • Contribute to the plan: Calculate and allocate contributions by the contribution deadline(s).
  • Review distribution requests: As needed, review distribution requests, including spousal consent requirements, and instruct NFS accordingly.

The list of plan sponsor responsibilities is not intended to be complete, but is offered as a guide. As always, you are strongly encouraged to discuss and review your plan administrator responsibilities and/or any changes to your retirement plan with your tax and legal advisor.

You can find the Form 5500-EZ on the IRS website or you may request a blank copy by contacting the IRS at 800-TAX-FORM. Forms 5500-SF and 5500 are available and must be completed at the DOL EFAST2 web site.

Yes. If you terminated your plan during 2016, a final Form 5500 is due after all assets under the plan have been distributed, even if you were never required to file before.

Either method is acceptable, but you should be consistent from year to year. Your Annual Valuation Statement reports your plan's assets on a cash basis rather than an accrual basis. Consult your tax advisor for guidance.

A deceased participant's assets must be reported as an asset of the plan until those assets are distributed from the plan to a beneficiary.

For other than the final plan year, if you meet the conditions for filing Form 5500-EZ or Form 5500-SF, and you have one or more one-participant plans that had total assets of $250,000 or less at the end of that plan year, you no longer need to file. Please refer to the IRS Instructions for Form 5500-EZ for more information.

Please consult the Form 5500-EZ and Form 5500-SF Instructions for more details. Other forms may include:

  • Form 8955-SSA, Annual Registration Statement Identifying Separated Participants With Deferred Vested Benefits (formerly Schedule SSA (Form 5500)) — Do not file with Form 5500-SF. File the statement separately with the IRS.
  • Schedule SB for single employer defined benefit plans
  • Schedule MB for multiemployer defined benefit plans or for certain money purchase plans amortizing a funding waiver

*Assets held outside a National Financial Retirement Plan account are not reflected in the Annual Valuation Statement and are not considered plan assets.

National Financial does not provide legal or tax advice. The information herein is general and educational in nature and should not be considered legal or tax advice. Tax laws and regulations are complex and subject to change, which can materially impact investment results. National Financial cannot guarantee that the information herein is accurate, complete, or timely. National Financial makes no warranties with regard to such information or results obtained by its use, and disclaims any liability arising out of your use of, or any tax position taken in reliance on, such information. Consult an attorney or tax professional regarding your specific situation.