Download How to help your clients cope with EFAST2

Helping Your Clients Cope
with EFAST2!
Facilitated by:
Steve Sokolic, ERISA Attorney and
Reed Cline, Technical Consultant
Benefit Consultants Group, Inc.
600 Delran Parkway, Suite B, Delran, NJ 08075
800-524-4015 • www.bcgbenefits.com
Expert Advice • Innovative Options • Personalized Service
EFAST 2--What is it and what does it
mean to me?
The government has mandated that almost all retirement plan
reporting be done electronically. The process for doing this is
called EFAST, and since this is the second incarnation of
electronic filing, it is known as EFAST2.
Most of your clients, and that includes you if you have a plan,
will have to use this process.
Plans Not Affected
The only plans this does not affect are those who can file a
5500-EZ form. These are known as single participant
plans, plans of owners and their spouses, or partners and
their spouses. These plans will file paper forms with the
IRS and will not do electronic filing. They could if they
wanted to, but it is not recommended because all
electronically filed forms will be available for viewing on the
web by anyone in the world.
How Does it Work?
For anyone who is familiar at all with using
email and viewing information on the web
it is rather easy. If you have a client that
does not use email or have a computer,
they will need assistance because having
an email address is an absolute
requirement.
EFAST2--Let’s Get Started!
To get started, one gets on the web, and goes to www.efast.dol.gov.
That gets you to all of the explanations and tutorials on how to get
your individual identification and PIN for electronically signing the
5500.
Caution, you can only get one identification and PIN per email
address.
EFAST2--Electronic Filing
• Two ways to create & submit filings:
- EFAST2-approved third-party software
OR
- I-FILE (free web based filing application)
• Filing will be through the BCG software
because it provides added value to user.
EFAST2 Components
• I-REG – Internet Registration
• I-FILE – Internet Filing
• I-FAS Internet Filing Acceptance
• All found at www.efast.dol.gov
STEP 1
Once you complete the first part of the process, the Department of
Labor (DOL) will send an email to the address given with the
information necessary to take the final step. With the information
in that email, you then sign into a different web page, enter the
information given to you, and establish your personal password.
You now have an account or profile with the DOL. You can check
and if necessary change any information in your profile except
your identification and PIN. This information is good forever, or
expires after three years if it is unused. Because it is a
government system, the password expires in 30 days.
To get back in, the client would have to put in their identification,
check ‘Forgot Password’, and follow the steps to establish a new
password.
STEP 2
The next step is taken by BCG who
prepares the 5500. Once the 5500
is ready, BCG will send an email
with a special user name and
password, and a website to use.
The client will use this information
to sign on to the BCG website,
review the 5500, and then select to
sign it electronically and submit the
5500 to the DOL.
STEP 3
This is where the identification and PIN are used. They are the
electronic signature. The client then indicates the form is to be
submitted. Your preparer will check the response from the DOL
to see that everything went ok. If it did not go right, your
preparer will get back to you by email after making any
necessary corrections. The client then signs onto the website
again and again signs electronically and submits the 5500.
STEP 4
The client is required to print the 5500
(and any included schedules and
attachments), sign and date it, and
keep it in their permanent records.
The 5500 will not be stored
permanently on the website.
EFAST2--Who Needs Credentials?
• Anyone signing the face of Form 5500
- Plan Sponsor, Plan Administrator, Individual
signing for DFE
• For plans filing under Title I of ERISA, the DOL
requires the Plan Administrator to sign.
• If the Plan Sponsor IS the Plan Administrator,
signing as Plan Administrator is enough.
• If you use BCG’s software, you don’t need
any credentials, other than as signer
BCG Special Process
BCG has a special process for the rare client who
cannot complete the electronic filing. BCG will
provide special authorization on forms to these
clients for BCG to file the 5500. Once the forms
and payment are returned, BCG will send the 5500
to the client for signature and date. This is
returned to BCG.
BCG will attach the signed 5500 to the electronic
file and submit it for the client. (Note that the
client’s signature is part of the filing and can be
viewed on the web. The fee for this special
process is $275.)
EFAST2--How to View Submitted
Filings
• Go to www.efast.dol.gov and under “Filings” click
“Form 5500/5500-SF Search”
Questions?
Additional Resources:
• I-FILE tutorial on DOL’s website.
• EFAST2 Help Desk: 866-GO-EFAST
Stay tuned for future installments of the
BCG advisor educational webinar series.