NRECA Employee Benefits Weekly

NRECA Provides Assistance in Completing Form 990

Posted on Posted in Retirement Benefits

NRECA can assist your tax-exempt cooperative in the annual preparation of Internal Revenue Service Form 990, Return of Organization Exempt from Income Tax. In particular, NRECA’s actuarial services team can calculate the change in actuarial value of Retirement Security (RS) Plan benefits for each individual included on the Form 990 and, if applicable, similar amounts for the nonqualified deferred compensation pension restoration and executive benefit restoration plans.

If you have not previously submitted a request for Form 990 actuarial value calculations, please reach out first to your co-op’s field representative, who will guide you through the process.

Co-ops that have requested assistance from NRECA in the past are reminded to send all new requests and questions via email to RS990@nreca.org. In the email, co-ops need to:

  • Indicate the reporting tax year for which they are requesting assistance;
  • Include each participant’s legal first and last names and the last four digits of each participant’s Social Security number;
  • Place all information in the text of the email rather than sending as an attachment.

Please follow the IRS Form 990 instructions and only provide the names of the participants that meet the requirements to be listed on Form 990, Part VII, Section A. Tax year 2021 requirements include:

  • All current officers
  • Current key employees with over $150,000 of reportable compensation
  • Current five highest compensated employees with over $100,000 of reportable compensation, other than officers or listed key employees
  • Former officers, key employees and five highest compensated employees with over $100,000 of reportable compensation

All requests for assistance received before April 15, 2022 will be completed by April 30, 2022. Requests received on or after April 15 will be completed within two weeks after receipt of the request. In all cases, NRECA will inform the co-op of the date when it expects to complete the request. Completed requests will include a Form 990 informational flier that details the methodology used in NRECA’s calculations as well as an overview of the defined benefit plan information that is required when submitting Form 990 to the IRS.

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