Certain employee benefit plans, including qualified retirement
plans, must file an annual return/report on Form 5500 with the
Department of Labor, which is shared with the IRS. Each year
discreet changes are typically made to the Form 5500 and its
accompanying schedules. One such change made to the instructions
underlying Lines 4l of Schedules H and I of the Form 5500 and Line
10f of Form 5500-SF has caused plan filers considerable angst.
The question, which was originally added in 2009, asks "Has
the plan failed to provide any benefit when due under the
plan?" Prior to 2015, the instructions did not include
examples of what constituted a reportable failure to provide any
benefit when due under the plan. The IRS "clarified" the
instructions in connection with the 2015 Form 5500 and Form 5500-SF
to explain that a reportable failure included unpaid minimum
required distributions (RMDs) to 5% owners who have attained age
70½, and non-5% owners who have attained age 70½
