5013 Form? You May Mean IRS Form 5310

While a search for “5013 form” may be common, the correct document for an employer ending a retirement plan is IRS Form 5310, Application for Determination for Terminating Plan. This application is used to ask the Internal Revenue Service (IRS) for a determination letter. The purpose of this letter is to confirm that the termination of the plan does not negatively impact its tax-qualified status under the Internal Revenue Code. Receiving this ruling from the IRS provides assurance that the process of ending the plan complies with tax regulations.

Who Should File Form 5310

The responsibility for filing Form 5310 falls to the employer or plan administrator who has decided to terminate a retirement plan. This applies to various types of deferred compensation plans, including pension plans, profit-sharing arrangements, and 401(k)s. The filing is a request for a determination letter confirming the plan’s termination adheres to legal and regulatory standards, preserving its qualified status.

While filing Form 5310 is a voluntary action, it is a highly recommended step. The letter ensures that when assets are distributed to participants, those employees can roll over their funds into other qualified retirement accounts, such as an IRA, without facing immediate taxation. For the employer, it finalizes the plan’s life cycle with documented IRS approval, mitigating risks of future compliance issues or penalties.

Information and Documents Needed to Complete Form 5310

Completing Form 5310 requires gathering specific information and supporting documents. The form itself requires basic identifying details, including the employer’s name and Employer Identification Number (EIN), the official name and three-digit number of the plan, and the proposed date of plan termination. You will also need to provide a census of plan participants, detailing the total number of employees covered and their status.

Beyond the primary application form, several attachments are required.

• A completed Procedural Requirements Checklist, which is provided within the Form 5310 instructions.
• Form 6088, Distributable Benefits from Employee Pension Benefit Plans, which provides the IRS with a detailed breakdown of the distributable benefits for all plan participants.
• Copies of plan documents, including the most recent restatement of the plan, the associated adoption agreement, and any amendments made since the last restatement.
• Recent statements from the trust or custodial account holding the plan’s assets to show the financial status of the plan.
• A copy of the Notice to Interested Parties, which is the formal announcement provided to employees informing them of the determination letter application.

The Filing Process for Form 5310

The entire submission, including the form and all supporting documents, must be filed electronically through the Treasury Department’s Pay.gov portal. Filers will need to create an account on the website, locate Form 5310, and complete the application online.

A user fee must be paid at the time of the electronic submission. The fee amount varies, so filers must consult the most recent IRS Revenue Procedure for the current fee schedule. Payment is integrated into the Pay.gov submission process.

After the application is submitted, the IRS begins its review process. The IRS cannot issue a determination letter until at least 60 days after receiving the application, and filers can generally expect to hear from the agency within 145 days of submission. The IRS may contact the filer or their representative to request additional information, and responding to these inquiries promptly is important.