Calendar Year SAR Must be Distributed by Sept. 30, 2016
Plans that are subject to ERISA and Form 5500 filing, must distribute the Summary Annual Report (SAR) to participants within nine months of the end of the plan year. Thus, a calendar year plan is required to distribute the SAR for the 2015 plan year by Sept. 30, 2016. If the plan applied for an extension to the Form 5500 filing, the SAR is then due within 2 months following the filing.
The SAR is a summary of the plan’s information reported on the Form 5500. If a plan is not subject to Form 5500 filing, then it is exempt from the SAR notice requirement—including church plans, governmental plans and unfunded/insured plans with fewer than 100 participants. Also, large self-insured plans that are unfunded are exempt from the SAR requirement even though they are subject to the Form 5500 filing requirement.
Model language is available for SAR preparation. Please ask your ShawHankins Benefits Consultant for assistance. For additional information, see the frequently asked question posted August 24, 2016.