Ted's Table

Technical Terms Employee Retirement Income Security Act (ERISA) Rollover

TB: Regardless of where you live, as long as you are an employee of this company you have not terminated employment.

A change in your status so that you are no longer able to contribute to the plan won't make you eligible to roll over your money. Similarly, a change in employment status, such as from hourly to salaried, which may change your eligibility to contribute isn't a situation that opens the door to let you withdraw or roll over money accumulated in the plan.

TB: I have read the instructions for Form 5500; they include an explanation of who must file and what plans are exempt from filing. All pension-benefits plans covered by the Employee Retirement Income Security Act (ERISA) are required to file this form except for those listed as being excluded from this filing.

I have read the list of excluded plans and none seem to specifically apply to tribal entities. I can't find anything in the instructions to indicate that tribal entities should be treated any differently from other organizations.

Let me put this in perspective. Historically, there have been special provisions in ERISA for church plans. Plans maintained by church entities may elect to be covered under ERISA but they are not required to do so. Churches that elect to have ERISA coverage must file a Form 5500. The special provisions covering church plans are in the instructions for filing Form 5500.

Related Reading Ted's Table: I'm moving to the United States; can I roll money saved overseas into a 401(k)? 401(k) ABCs: How do 401(k) plans work?

The instructions also cover plans outside the United States that are maintained primarily for nonresident aliens, and plans that cover residents of Puerto Rico, the U.S. Virgin Islands, Guam, Wake Island or American Samoa. The fact that these areas are addressed and tribal plans aren't leads me to conclude that tribal plans need to file the form. That is, unless the Department of Labor overlooked tribal plans when they prepared the instructions for this form.

You can call the IRS at 1.877.829.5500 if you want to further check this matter. I have never worked with plans that cover tribal entities. I would like to hear from someone who has if he or she has information showing that these plans are in fact exempt from filing a Form 5500.

Ted Benna, creator of the first 401(k) retirement savings plan, will answer your most intriguing questions every week. With over 30 years of experience as an employee benefits consultant, Ted is a nationally recognized expert on benefits issues. He has authored two books, Helping Employees Achieve Retirement Income Security and Escaping the Coming Retirement Crisis, and is President of the 401(k) Association. Ted is a frequent speaker at meetings of 401(k) plan sponsors and participants. His articles and comments have appeared in numerous publications, including The New York Times and The Wall Street Journal.

The information provided here is intended to help you understand the general issue and does not constitute any tax, investment or legal advice. Consult your financial, tax or legal advisor regarding your own unique situation and your company's benefits representative for rules specific to your plan.

Ted's Table

Technical Terms Employee Retirement Income Security Act (ERISA) Rollover

TB: Regardless of where you live, as long as you are an employee of this company you have not terminated employment.

A change in your status so that you are no longer able to contribute to the plan won't make you eligible to roll over your money. Similarly, a change in employment status, such as from hourly to salaried, which may change your eligibility to contribute isn't a situation that opens the door to let you withdraw or roll over money accumulated in the plan.

TB: I have read the instructions for Form 5500; they include an explanation of who must file and what plans are exempt from filing. All pension-benefits plans covered by the Employee Retirement Income Security Act (ERISA) are required to file this form except for those listed as being excluded from this filing.

I have read the list of excluded plans and none seem to specifically apply to tribal entities. I can't find anything in the instructions to indicate that tribal entities should be treated any differently from other organizations.

Let me put this in perspective. Historically, there have been special provisions in ERISA for church plans. Plans maintained by church entities may elect to be covered under ERISA but they are not required to do so. Churches that elect to have ERISA coverage must file a Form 5500. The special provisions covering church plans are in the instructions for filing Form 5500.

Related Reading Ted's Table: I'm moving to the United States; can I roll money saved overseas into a 401(k)? 401(k) ABCs: How do 401(k) plans work?

The instructions also cover plans outside the United States that are maintained primarily for nonresident aliens, and plans that cover residents of Puerto Rico, the U.S. Virgin Islands, Guam, Wake Island or American Samoa. The fact that these areas are addressed and tribal plans aren't leads me to conclude that tribal plans need to file the form. That is, unless the Department of Labor overlooked tribal plans when they prepared the instructions for this form.

You can call the IRS at 1.877.829.5500 if you want to further check this matter. I have never worked with plans that cover tribal entities. I would like to hear from someone who has if he or she has information showing that these plans are in fact exempt from filing a Form 5500.

Ted Benna, creator of the first 401(k) retirement savings plan, will answer your most intriguing questions every week. With over 30 years of experience as an employee benefits consultant, Ted is a nationally recognized expert on benefits issues. He has authored two books, Helping Employees Achieve Retirement Income Security and Escaping the Coming Retirement Crisis, and is President of the 401(k) Association. Ted is a frequent speaker at meetings of 401(k) plan sponsors and participants. His articles and comments have appeared in numerous publications, including The New York Times and The Wall Street Journal.

The information provided here is intended to help you understand the general issue and does not constitute any tax, investment or legal advice. Consult your financial, tax or legal advisor regarding your own unique situation and your company's benefits representative for rules specific to your plan.