Helping Clients with EFAST2: Expert Advice & Innovative Options

1. 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

2. 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.

3. 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.

4. 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.

5. 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.

6. 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.

7. EFAST2 Components • I-REG – Internet Registration • I-FILE – Internet Filing • I-FAS Internet Filing Acceptance • All found at www.efast.dol.gov

8. 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.

9. 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.

10. 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.

11. 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.

12. 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

13. 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.)

14. EFAST2--How to View Submitted Filings • Go to www.efast.dol.gov and under “Filings” click “Form 5500/5500-SF Search”

15. Questions? Additional Resources: • I-FILE tutorial on DOL’s website. • EFAST2 Help Desk: 866-GO-EFAST

16. Stay tuned for future installments of the BCG advisor educational webinar series.