Eastern Wisconsin’s representative in Congress has reached across the political aisle in an attempt to modernize and streamline outdated federal reporting requirements.
Republican Congressman Glenn Grothman of Glenbeulah and Democratic Congressman Donald Norcross of New Jersey have introduced the Form 5500 Filing Simplification Act, which establishes a single, uniform filing deadline for retirement plans.
Under current law, the statutory deadline for filing Form 5500 does not provide sufficient time for companies to complete all the necessary steps for filing with the Department of Labor.
As a result, many plan sponsors are forced to submit an extension request with the IRS using Form 5558 simply to file their annual Form 5500 on time.
Rep. Grothman noted, “This redundant two-step process wastes time and money, creates unnecessary headaches for small and mid-sized businesses, and does nothing to help workers. Our bill fixes that.”
Congressman Donald Norcross agreed, adding, “Workers need a clear window into what is happening behind the scenes with their retirement accounts and most employers want to act in good faith to provide that transparency.”
The legislation is supported by the American Retirement Association, the ERISA Industry Committee, the U.S. Chamber of Commerce, the CHRO Association, and the American Benefits Council.
