Getting Ready for EFAST2 discusses the 2009 plan year requirement to file IRS Form 5500 electronically.

Plan sponsors have three options for entering data on the Form 5500 (and Schedules) and filing it electronically:

1. a private web-based system (e.g., Relius Web Client)
   
2. a third party software application, which then transmits it to the DOL via the Internet; or
   
3. the DOL's web-based system (IFILE).

The private web-based system provides the most user-friendly and efficient arrangement for administrators and financial institutions completing numerous 5500s. A large employer completing its own 5500s in-house may use third party software to complete and transmit its 5500s to the DOL. A third party administrator (TPA) or financial institution completing 5500s on behalf of plan sponsors can use third party software to complete the 5500s but would need to upload the 5500s on to IFILE in order to facilitate the electronic signature and transmittal to the DOL. The DOL has designed IFILE for practitioners who complete 2-3 5500s. The DOL has not designed the system to accommodate preparers who complete a large volume of 5500s.

It also contains the following FAQs:

• When is the mandatory electronic filing system (EFAST2) effective?
• Must all retirement plans file electronically?
• How does a plan sponsor obtain electronic signature credentials?
• May a TPA or financial institution obtain signer credentials on behalf of its clients?
• How do I use the electronic signature credentials in filing a Form 5500 electronically?