Old MacDonald Had a Farm…EIN Confusion?

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by Becky Achten

The trusts maintained to hold assets of ERISA plans are separate tax entities from the employers sponsoring the plans. Therefore, each is required to have its own federal tax ID number. Knowing when and where to use whose EIN can be confusing. Here are a few tidbits of information on that topic. This information applies to single employer plans. Multi- and multiple-employer plans may have different rules.

Even though the trust has its own EIN, in most cases, use the plan sponsor’s EIN.

  • The EIN of the plan sponsor must be listed in the summary plan description (SPD).
  • The summary annual report (SAR) uses the plan sponsor’s EIN.
  • The plan sponsor’s EIN is used to file the Form 5500 (and, if an extension is requested, the Form 5558).
  • The plan sponsor’s EIN is used to file the Form 5330 for paying excise tax on prohibited transactions.
  • Use the plan sponsor’s EIN when submitting an application under any of the following programs:
    • a request for a letter of determination on a qualified plan;
    • a correction under the voluntary correction program (VCP) for plan operational failures;
    • a correction under the voluntary fiduciary correction program (VFCP) for late deposits of employee contributions or loan repayments; or
    • a correction under the delinquent filer voluntary correction program (DFVCP) for late Form 5500 filings.

However, distributions from qualified plans are reported using the EIN of the payor on both the Form 1099-r and the Schedule R to the Form 5500. In many cases, this will be the EIN of the trustee or custodian that processes the distribution and prepares and files the Form 1099-r. However, if the plan sponsor is responsible for the Form 1099-r reporting, then the trust’s EIN should be used on the Form 1099-r and Schedule R.

With an EIN here and an SSN there
Here an employer, there a trust
Everywhere an EIN required…don’t let the farm confuse you!