What It Is, Who Files, and How to Meet the Deadline

If your company sponsors a benefit plan, July 31 is an important date to circle on your calendar. For plans that run on a calendar year, it's the deadline to file Form 5500. Miss it, and the penalties can add up fast. Here's what you need to know to file on time.

What is Form 5500?

Form 5500 is an annual report for employee benefit plans. The Department of Labor, the IRS, and the Pension Benefit Guaranty Corporation developed it together. The form documents your plan's finances, operations, and compliance with federal law under ERISA. In short, it's how regulators and plan participants get a clear picture of how a plan is run.

Who Has to File?

ERISA covers most private-sector employers that offer benefit plans. That includes retirement plans and welfare benefit plans. A welfare plan can be a group health plan, a health FSA, an HRA, or group dental, vision, life, or disability coverage.

Here's the key fact regarding exemptions: A small welfare plan is generally exempt if it meets both of these conditions:

• Fewer than 100 participants at the start of the plan year
• Fully insured, unfunded, or a combination of the two

Once a welfare plan hits 100 or more participants at the start of the plan year, it generally has to file. Plans funded through a trust may face added reporting and audit requirements. A few plans are exempt no matter their size, including government and church plans. When in doubt, confirm your status with your benefits advisor or ERISA counsel.

Which Form Should You File?

There are three versions, and the right one depends on your plan:

• Form 5500 for large plans, generally 100 or more participants
• Form 5500-SF for most small plans under 100 participants
• Form 5500-EZ for one-participant or owner-only retirement plans

You file Form 5500 and 5500-SF electronically through the DOL's EFAST2 system. Paper filing is not allowed. You can use approved third-party software or the DOL's free IFILE tool. Note that EFAST2 now uses Login.gov for sign-in, so set up your access early.

What Do You Need to Prepare Before Filing?

Gather these documents before you start:

• Plan documents and your plan's three-digit number (welfare plans start at 501)
• Participant counts at the beginning and end of the year
• Financial details and any service provider fees
• Schedule A insurance information from your carrier
• An independent audit report, if your plan requires one

Large funded plans often need that audit attached, so request it early from your accountant.

Why It Matters

The penalties for missing this are real. The Department of Labor can fine you over $2,700 per day for a plan that fails to file a complete Form 5500, and that amount adjusts for inflation each year. If you realize you missed a deadline, the DOL's Delinquent Filer Voluntary Compliance Program lets you file late at a reduced penalty, as long as you act before the DOL contacts you.

You can get a 2.5-month extension by filing IRS Form 5558. That moves your deadline to October 15. It's crucial to file the 5558 by the original due date of July 31, or the extension won't apply.

One More Task After Filing

You generally need to send a Summary Annual Report to participants. For calendar-year plans, that's usually due by September 30, or about two months after an extended filing date.

This article is for general informational purposes only and is not legal or tax advice. Confirm your obligations with a qualified benefits advisor, third-party administrator, or ERISA attorney, and check the latest guidance at DOL.gov and IRS.gov.