Houston, TX, July 19, 2010 – Nova 401(k) Associates, a leading Third Party Administration (“TPA”) firm in the 401(k) industry, announced today the company delivered 2009 Form 5500s to over 95% of their 401(k) clients by June 30, 2010. The Form 5500 is the annual return for 401(k) plans. For calendar year plans, the regular deadline for 2009 Forms to be filed is August 2, 2010. The 2009 plan year is the first plan year for which electronic filing is required.
“Timely completion of Form 5500s is part of our overall commitment to client satisfaction,” says Karen Smith, founder and president of Nova 401(k) Associates. “With required electronic filing, many 401(k) providers seem to have taken it as a given that they would file a large number of extensions for clients. Proper planning and clear client communication have helped us complete Form 5500s as early as we did in prior years. With the 2009 Form 5500s substantially completed, we will be able to spend the summer and fall on other important client initiatives.”
Smith continued, “Of calendar-year 401(k) clients who had timely submitted data and payment, we sent out over 95% of their 2009 Form 5500s by June 30, 2010. Our goal is for 401(k) clients to have their Form 5500s in their hands at least three weeks before the filing deadline so that our clients have sufficient time to review the information and submit the filing.”
Nova has taken a proactive approach to preparing clients about electronic filing of Form 5500s since last year. The company hosted eleven webcasts about obtaining filing credentials and electronic filing. According to Arasely Colchado, Nova’s Defined Contribution Practice Manager, “Our account managers did a great job at working towards this goal and consulting with clients. We continue to work with clients who need additional help on submitting their Form 5500 electronically.” As of July 16, 2010, 75% of clients who had been sent their Form 5500 had successfully electronically signed and filed the Form 5500 with the DOL. An additional 12% are waiting for their CPA audit reports.