2009 Instructions For Schedule R (Form 5500) Retirement Plan Information (Page 2 of 4) in pdf

under Code section 412(e)(2). These exceptions include

Line 7. Check “Yes” if the minimum required contribution

profit-sharing or stock bonus plans, insurance contract plans

remaining in line 6c will be made not later than 8

months after

described in Code section 412(e)(3), and certain plans to which

the end of the plan year. If “Yes,” and contributions are actually

no employer contributions are made.

made by this date, then there will be no reportable deficiency

and IRS Form 5330 will not need to be filed.

Nonqualified employee pension benefit plans are subject to

Line 8. Revenue Procedure 2000-40, 2002-2 C.B. 357,

the minimum funding requirements of ERISA section 302

providing for automatic approval for a change in funding method

unless specifically exempted under ERISA sections 4(a) or

for a plan year, generally does not apply unless the plan

301(a).

administrator or an authorized representative of the plan

The employer or plan administrator of a single-employer or

sponsor explicitly agrees to the change. If a change in funding

multiple-employer defined benefit plan that is subject to the

method made pursuant to such a revenue procedure (or a class

minimum funding requirements must file Schedule SB as an

ruling letter) is to be applicable for the current plan year, this

attachment to Form 5500. Schedule MB is filed for

line generally must be checked ‘‘Yes.’’ In certain situations,

multiemployer defined benefit plans and certain money

however, the requirement that the plan administrator or an

purchase defined contribution plans (whether they are

authorized representative of the plan sponsor agree to the

single-employer or multiemployer plans). However, Schedule

change in funding method will be satisfied if the plan

MB is not required to be filed for a money purchase defined

administrator or an authorized representative of the plan

contribution plan that is subject to the minimum funding

sponsor is made aware of the change. In these situations, this

requirements unless the plan is currently amortizing a waiver of

line must be checked “N/A.” See section 6.01(2) of Rev. Proc.

the minimum funding requirements.

2000-40. If the plan’s change in funding method is not made

pursuant to a revenue procedure providing automatic approval

Line 4. Check ‘‘Yes’’ if, for purposes of computing the

or a class ruling letter (e.g., it is pursuant to a regulation or

minimum funding requirements for the plan year, the plan

Notice 2009-22), then this line should be checked “N/A.”

administrator is making an election intended to satisfy the

requirements of Code section 412(d)(2) or ERISA section

Part III — Amendments

302(d)(2). Under Code section 412(d)(2) and ERISA section

Line 9.

302(d)(2), a plan administrator may elect to have any

•

Check “No” if no amendments were adopted during this plan

amendment, adopted after the close of the plan year for which it

year that increased or decreased the value of benefits.

applies, treated as having been made on the first day of the

•

Check “Increase” if an amendment was adopted during the

plan year if all of the following requirements are met:

plan year that increased the value of benefits in any way. This

1. The amendment is adopted no later than two and

includes an amendment providing for an increase in the amount

one-half months (two years for a multiemployer plan) after the

of benefits or rate of accrual, more generous lump sum factors,

close of such plan year;

COLAs, more rapid vesting, additional payment forms, or earlier

2. The amendment does not reduce the accrued benefit of

eligibility for some benefits.

any participant determined as of the beginning of such plan

•

Check “Decrease” if an amendment was adopted during the

year; and

plan year that decreased the value of benefits in any way. This

3. The amendment does not reduce the accrued benefit of

includes a decrease in future accruals, closure of the plan to

any participant determined as of the adoption of the

new employees, or accruals being frozen for some or all

amendment unless the plan administrator notified the Secretary

participants.

of the Treasury of the amendment and the Secretary either

•

If the amendments that were adopted increased the value of

approved the amendment or failed to disapprove the

some benefits but decreased the value of others, check “Both.”

amendment within 90 days after the date the notice was filed.

Part IV — ESOP Information

See Temporary Regulations section 11.412(c)-7(b) for

Line 11b. A loan is a “back-to-back loan” if the following

details on when and how to make the election and what

requirements are satisfied:

information to include on the statement of election, which must

be filed with the Form 5500 annual return/report.

1. The loan from the employer corporation to the ESOP

qualifies as an exempt loan under DOL regulations at 29 CFR

Line 5. If a money purchase defined contribution plan

2550.408b-3 and under Treasury Regulations sections

(including a target benefit plan) has received a waiver of the

54.4975-7 and 54.4975-11; and

minimum funding standard, and the waiver is currently being

2. The repayment terms of the loan from the sponsoring

amortized, complete lines 3, 9, and 10 of Schedule MB. See

corporation to the ESOP are substantially similar to the

instructions for Schedule MB. Attach Schedule MB to Form

repayment terms of the loan from the commercial lender to the

5500. The Schedule MB for a money purchase defined

sponsoring employer.

contribution plan does not need to be signed by an enrolled

actuary.

Part V — Additional Employer Information for

Line 6a. The minimum required contribution for a money

Multiemployer Defined Benefit Pension Plans

purchase defined contribution plan (including a target benefit

Required Attachments. Multiemployer defined benefit plans

plan) for a plan year is the amount required to be contributed for

that are in Endangered Status or Critical Status must attach a

the year under the formula set forth in the plan document. If

summary of their Funding Improvement Plan or Rehabilitation

there is an accumulated funding deficiency for a prior year that

Plan (as updated, if applicable) and also any update to a

has not been waived, that amount should also be included as

Funding Improvement Plan or Rehabilitation Plan. For this

part of the contribution required for the current year.

purpose, whether a plan is in Endangered Status or Critical

Line 6b. Include all contributions for the plan year made not

Status is determined by taking into account any election under

later than 8

months after the end of the plan year. Show only

section 204 of the Worker, Retiree, and Employer Recovery Act

contributions actually made to the plan by the date the form is

of 2009 (“WRERA”). The instructions for line 4a of Schedule MB

filed. For example, do not include receivable contributions for

provide that the Plan Status Code entered on line 4a of

this purpose.

Schedule MB must be based on the actuarial certification of the

Line 6c. If the minimum required contribution exceeds the

plan’s status, without regard to the election under section 204 of

contributions for the plan year made not later than 8

months

WRERA. In certain cases, as a result of the WRERA election,

after the end of the plan year, the excess is an accumulated

the plan status for purposes of attaching a summary of the

funding deficiency for the plan year. File IRS Form 5330,

multiemployer plan’s Funding Improvement Plan or

Return of Excise Taxes Related to Employee Benefit Plans,

Rehabilitation Plan to the Schedule R may not be the same as

with the IRS to pay the excise tax on the deficiency. There is a

shown by the Plan Status Code entered on line 4a of Schedule

penalty for not filing IRS Form 5330 on time.

MB. In such a case, an explanation of why the plan’s status is

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Instructions for Schedule R (Form 5500)

2009 Instructions For Schedule R (Form 5500) Retirement Plan Information Page 2

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