An Employer’s Guide to the Form 5500

Plan administrators must file the Form 5500 annually. As a 401(k) plan administrator, the Form 5500 filing is necessary to ensure your 401(k) plan satisfies Employee Retirement Income Security Act (ERISA) and IRS reporting requirements.

You’ll need to read, complete, and file the form carefully to avoid penalties. Fortunately, ePlan Services has a streamlined process to help plan administrators file easily and on time. We created our Annual Plan Review to help clients accurately complete the Form 5500 filing prior to the deadline. Plan admins can then file their forms with the Department of Labor through our convenient dashboard.

What is the Form 5500?

The Internal Revenue Service (IRS), Department of Labor (DOL), and Pension Benefit Guaranty Corporation (PBGC) developed the Form 5500. Businesses offering employer-sponsored retirement plans file the form with DOL to disclose details about plan operations and financial status.

Plan administrators will need to include information such as, but not limited to:

• The number of active participants in a plan
• The number of retirees that participated in the plan
• Information about the plan sponsor and plan administrator
• Details about plan funding
• Compliance information
• Fiduciary bond information

By providing this information, plan administrators confirm that their plans are in compliance with government regulations.

Which version of the Form 5500 should you file?

There are several forms in the Form 5500 series. The version of the Form 5500 you complete will depend on the size of your business and the type of retirement plan you offer.

The three forms include:

• Form 5500: Plans with 100 participants or more
• Form 5500-SF: Plans with fewer than 100 participants
• Form 5500-EZ: Single participant plans with $250,000 or more in assets (can also include spouses)

If you’re not sure which form to file, ask your tax professional.

When is the Form 5500 due?

For most plans, the Form 5500 is due by the last day of the seventh month after the end of a plan year. This deadline typically falls on July 31st for a calendar year plan or the following business day if July 31st falls on a weekend. Businesses are subject to late filing fees, so you must file an extension with the IRS prior to the deadline to avoid these penalties.

If you’ve terminated your plan but the plan still holds assets, you’ll need to file the Form 5500 annually until the last funds have been distributed to participants. Plan administrators must keep a copy of the Form 5500 with all the signatures as part of the retirement plan’s records.

What are the penalties for filing the Form 5500 late?

The IRS and the DOL both charge penalties for late filing. This means that if you miss the deadline, you can be penalized twice. The IRS charges a fine of $250 per day up to a maximum of $150,000 for filing late with no notice. DOL penalties can go up to $2,400 per day with no maximum. Small plans (fewer than 100 participants) cap at a maximum penalty of $1,500 while large plans (100 participants or more) cap at $4,000.

How do you file the Form 5500?

ePlan’s online dashboard makes it easy to review plan data and file the Form 5500 with the DOL. We offer pre-filled forms for a smooth reporting process, and plan administrators can also check the form’s status through their online accounts.

If you have more questions about the Form 5500, check the resources in our Help Center. Our service teams are also available to help, so give us a call if you need support.

This content is for educational purposes only, is not intended to provide specific legal or financial advice, and should not be used as a substitute for the legal advice of a qualified attorney or financial professional. The information may not reflect the most current legal developments, may be changed without notice and is not guaranteed to be complete, correct, or up-to-date.