The Summary Annual Report, more commonly referred to as the SAR, is an annual report summarizing the retirement plan’s financial activities as reported on the Form 5500 filed with the Internal Revenue Service (IRS). The Department of Labor (DOL) requires that all active plan participants, terminated participants with an account balance, and any beneficiaries receive a SAR within 9 months after the close of the plan year. However if an extension is filed for the Form 5500, the participants have an additional two months to receive the SAR. For example, the filing deadline for a calendar plan year-end (December 31) is July 31 so the SAR is due to participants by September 30. If the Form 5500 is on extension until October 15, the SAR is then due to participants by December 15. The SAR is commonly distributed to participants either in-person or via postal mail.
The SAR includes basic Plan data such as Plan name, Plan Identification Number, Plan Number and the date the Plan year begins and ends. The SAR shows the plan assets as of both the first and last days of the plan year, as well as the total net change during the year. It also provides the participant with information on the Plan’s financial expenses such as administrative fees and distributions to participants as well as financial income like employer and employee contributions, rollovers and any earnings from investments.
If the Plan’s assets are trustee directed, or commingled, the investment company and the total invested assets are listed. The SAR also provides the participant with the Third Party Administrator’s (TPA) contact information if the participant chooses to request a full annual report.
The Summary Annual Report is not required to be filed with the Department of Labor or Internal Revenue Service.
~ Angela Steele, Retirement Plan Consultant
Retirement Plans Redefined 