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Employee Plans Compliance Unit (EPCU) - Current Projects - End of Year/Beginning of Year Asset Mismatch

Why did I receive an EPCU Compliance Check Letter?

You filed a Form 5500 series return which reflected a “beginning of year” asset amount which is different from the prior year “end of year” asset amount. In general, the dollar amount of assets on the first day of a plan year and the last day of the prior plan year should be the same dollar amount.

What is the EPCU attempting to determine?

We want to make sure the Form 5500 series returns you filed reflect accurate asset information. We also want to determine common reasons why this error may have occurred.

What actions do I need to take?

Review your Form 5500 series returns filed at www.efast.dol.gov. Review your financial statements for the plan years shown on the compliance contact letter. Amend any Form 5500 series return that reflects inaccurate information. Complete the Attachment and return it to the person listed on the compliance contact letter via e-mail, fax or postal mail. You may also furnish any other documents or clarifying material that you believe will be helpful for us to review. Please make every effort to provide a complete, accurate and timely response.

If You Have Questions

Please feel free to contact the person listed in the cover letter with questions about this project. If you contact us via email, please provide your name, telephone number, the best time to call you and your time zone. We cannot respond by e-mail or guarantee the security of any information submitted by e-mail.

Background

A review of Form 5500 series returns showed returns that reflect a “beginning of year” asset amount which is different than the prior year “end of year” asset amount. In general, the asset amount on the first day of a plan year should be the same dollar amount as the asset amount on the last day of the prior plan year.

The EPCU will be mailing a compliance contact letter with an attachment to a random sample of plan sponsors based on the information provided on Form 5500 series returns. A closing letter will be issued to the plan sponsor upon completion of our review.

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Page Last Reviewed or Updated: 09-Jun-2016