Mary Samsa Published in Benefits & Compensation Law for Nonprofits
“Form 5500 and Audit Relief for 403(b) Plans”

Mary Samsa’s article, “Form 5500 and Audit Relief for 403(b) Plans,” was published in Benefits & Compensation Law for Nonprofits. In her article, Mary discusses 403(b) plans and how the annual governmental reporting requirements are changing for plan years before January 1, 2009. According to Mary, due to the various disconnects in reporting situations between 403 (b) plans and 401(k) plans, the Internal Revenue Service (IRS) and the Department of Labor (DOL) decided that the annual reporting requirements for 403(b) plans need to be streamlined and follow more closely to what is required for 401(k) plans.

Mary explains, “The American Institute of Certified Public Accountants (AICPA) asserted to the DOL that whether audited financial statements are required or not for an organization, the Form 5500 filing does have a balance sheet reporting component that requires a plan sponsor to report opening and ending balances on the financial statements.” She pointed out that unless an organization knows where all its 403(b) assets are, an organization is unable to verify the accuracy of the opening and closing balances that must be reported.

Mary concludes that the DOL has acknowledged that there may be instances when full annual reporting compliance by 403(b) plans may not be possible for the 2009 plan year. She continues, “Consequently, the DOL has provided that the guiding principle must be to ensure that appropriate efforts are made to act reasonably, prudently, and in the interest of the plan’s participants and beneficiaries.”