Schedule SB to Form 5500: What is it?


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This is an IRS form that documents the annual funding valuation results for single employer defined benefit plans. It is filed annually as part of the Form 5500.

Most of the information needed to complete the Schedule is typically found in the valuation report. The government wants proof that the pension plan made contributions in accordance with minimum funding requirements.

In some instances, the Schedule SB does not have to be filed with the Form 5500. This applies to one-participant plans in conjunction with filing the Form 5500-EZ. The Schedule SB must still be completed, signed by the plan actuary and retained in plan sponsor’s plan records.

Some information contained in the Schedule SB may not be found in the standard valuation report including:

  • Contribution date/amounts for the plan year
  • Present value of these contributions
  • Reporting of funding waivers
  • Reporting of funding deficiencies from current or prior years

A certification is signed by the plan actuary attesting that professional standards have been met and providing assurance that all rules and regulations were followed. In many cases an analyst prepares the Schedule SB for the actuary’s review.

A set of attachments must be provided according to the Form’s instructions to detail certain aspects of the funding and determination. Note that the maximum tax-deductible contribution is not shown.

Also, the form does not show any FASB related numbers. It is suggested that the analyst become familiar with the instructions to the Form 5500 and Schedule SB. Each year the analyst should read the forms completely and become well versed with its contents.

It is good practice to discuss your findings with other professionals in the office and compare notes. You may be surprised to find different opinions and different ways of doing things which can make your job easier and more satisfying.

Paul Sundin

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