Fox & Fox 419(e) Plans

When you receive your required IRS annual reporting and disclosure forms, there will be two copies. One copy is to be properly executed and sent on to the EBSA, (a pre-addressed envelope has been included). The other copy is to be executed as well and retained for your files.

Only one page of the forms require further signatures. Page one of Form 5500 requires two signatures, (most likely the same person will be signing on both lines). The first signature line, Signature of plan administrator, refers to the legal plan administrator which is named as the plan sponsor/employer in item 2a of page one of the Form 5500. Therefore any officer of the named employer may sign and date this line.

The second signature line, Signature of employer/plan sponsor, refers to the plan sponsor/employer listed in item 2a of page one of the Form 5500. Therefore, any officer of the named employer may sign and date this line.

The forms must be executed and sent on to the EBSA by July 31, 2007 (for calendar year plans), failure to do so in a timely manner could generate late penalties of a minimum of $25 per day by the IRS, Department of Labor penalties begin at $1000.

Questions concerning the IRS annual filing should be made to Debra Jonigian (at 559.797.1000 ext 16, email debij@foxnfox.com)

Once your 419(e) plan is processed, within approximately six to eight weeks you will receive a binder that contains important information and documentation of your plan.

The cover letter accompanied the Binder may include a request for a copy of the insurance policy (or policies) held by the plan if we were not furnished a copy when the Plan was originally set up. A number of the plans received in December lacked a copy of the insurance policy (or policies).

A loose copy of the Summary Plan Description (SPD) is included in the Binder. Copies of the SPD should be made for each participant in the Plan. Fox & Fox can prepare the SPD's in booklet form if the client so desires. The price per booklet is $3.75.

Fox & Fox has yet to receive a number of executed Assignment of Policy for Collateral Security documents from various carriers. Your Binder may or may not include an executed copy of the Assignment of Policy for Collateral Security document.

Questions concerning the Binders or the Plan in general should be made to Debra Jonigian (at 559.797.1000 ext 16, email debij@foxnfox.com)