On The Form 5500, sometimes the answer lands you in trouble

When you’re filing that Form 5500, just notice that certain answers may likely lead you to an Internal Revenue Service or Department of Labor audit.


If you have a plan that is covered under ERISA, saying you don’t have a fidelity bond or don’t have the required amount based on the beginning year’s balance, you may get audited.


The same can be said if you report that you had a prohibited transaction or you made a late deposit of salary deferrals in the 401(k) plan.


If you’ve made the answer to these questions that will pique the government’s interest, it’s best to contact an ERISA attorney to see what type of corrective actions you need to take before the government audits you.



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