IRS Form 5310-A: When and How to File
A guide to Form 5310-A, which notifies the IRS of plan restructuring and confirms that participant benefits remain intact through the transition.
When a company alters the structure of its retirement plan, the Internal Revenue Service (IRS) must be informed. This notification is accomplished through IRS Form 5310-A, titled “Notice of Plan Merger or Consolidation, Spinoff, or Transfer of Plan Assets or Liabilities.” The primary function of this form is to report these significant plan events to the agency, ensuring that the changes comply with federal regulations. This reporting allows the IRS to oversee these changes and confirm that the retirement benefits of plan participants are protected throughout the process.
Determining Your Filing Requirement
The responsibility for filing Form 5310-A rests with the plan administrator or sponsor of each plan involved in the transaction. This means that in a merger involving two separate retirement plans, both plan sponsors generally have a filing obligation. The requirement to file is triggered by specific corporate events that fundamentally change a plan’s structure or the holding of its assets.
A plan merger or consolidation, which involves combining two or more plans into a single new plan, necessitates filing the form. Another triggering event is a plan spinoff, where a single plan is split into two or more separate plans. Finally, a transfer of plan assets or liabilities from one plan to another also requires notification. This involves moving a portion of a plan’s assets or the responsibility for its benefit payments to a different plan. For any of these events, Form 5310-A must be filed at least 30 days before the scheduled date of the transaction.
Information and Documentation for Submission
The form requires detailed information about all parties and plans involved in the transaction. This includes the legal name, Employer Identification Number (EIN), and address for the plan sponsor and the designated plan administrator for each plan. You will also need to provide the official plan name, the three-digit plan number, and the type of plan for every plan that is part of the merger, spinoff, or transfer.
An actuarial statement of valuation prepared by an enrolled actuary is a component of the submission package. The purpose of this statement is to show that the transaction complies with federal law. It must demonstrate that the value of each participant’s accrued benefit after the event is at least equal to the value of their benefit immediately before the event.
The Filing Process
The form should be mailed to the Internal Revenue Service, TE/GE Stop 31A Team 105, P.O. Box 12192, Covington, KY 41012-0192. For those using express or private delivery services, the address is: Internal Revenue Service, 7940 Kentucky Drive, Florence, KY 41042. It is important to use the correct address, as submissions for different types of employee plan forms are directed to various IRS processing centers. Sending the form to the wrong location can result in significant processing delays.
After the form is filed, the IRS does not issue a formal approval or determination letter for a Form 5310-A notice. Instead, the agency reviews the filing to ensure it is complete and that the transaction appears to comply with regulations, particularly the requirement to protect participant benefits. The filer should retain a copy of the submitted form and the proof of mailing for their records.
The IRS may contact the plan administrator or sponsor if it identifies any issues or has questions about the information provided. This could involve a request for clarification on the actuarial statement or details of the transaction. Responding promptly to any such inquiries is necessary to resolve potential compliance concerns.