Form 5500 filing: what you need to know

What is Form 5500?

Form 5500 is an annual report that provides information about your retirement plan to the federal government. It is generally filed with the Department of Labor (DOL), the Internal Revenue Service (IRS), and the Pension Benefit Guaranty Corporation (PBGC), when applicable.

The purpose of the filing is to help ensure retirement plans are being administered properly and in accordance with federal regulations. It also provides transparency by reporting information about the plan's financial condition, operations, investments, and service providers.

Who is required to file?

Many employer-sponsored retirement plans are required to file Form 5500 each year, although the specific filing requirements depend on factors such as:

• The type of retirement plan
• The number of plan participants
• The size of the plan
• Whether the plan qualifies for simplified reporting requirements

Because filing requirements can vary, it's important to work with your retirement plan professionals to determine which forms apply to your plan.

What information is included?

Form 5500 provides a comprehensive overview of your retirement plan. Information commonly reported includes:

• Basic plan information
• The number of plan participants
• Plan assets and liabilities
• Employer and employee contributions
• Investment information
• Plan expenses and fees
• Service providers
• Fiduciary and administrative information

The exact information required depends on your plan's size and reporting requirements.

When is Form 5500 due?

For many retirement plans operating on a calendar-year basis, Form 5500 is generally due by the end of July following the close of the plan year.

Example: If your plan year ends on December 31, Form 5500 is generally due by July 31 of the following year. Eligible plan sponsors may request an extension, providing additional time to complete the filing if needed.

Preparing well in advance of the deadline can help reduce stress and avoid last-minute complications.

Why is filing on time important?

Missing a filing deadline can result in significant consequences, including:

• Government penalties
• Additional administrative costs
• Corrective filing requirements
• Increased regulatory oversight
• Delays in resolving compliance issues

Maintaining organized records throughout the year makes it much easier to complete the filing accurately and on time.

How can plan sponsors prepare?

Successful Form 5500 preparation begins long before the filing deadline. Here are some ways to help ensure your Form 5500 is filed correctly and on time:

• Maintain accurate payroll and contribution records
• Reconcile plan assets regularly
• Review participant data for accuracy
• Keep plan documents up to date
• Communicate regularly with your recordkeeper, third-party administrator, and other service providers
• Schedule time well before the filing deadline to review required information

Taking a proactive approach can reduce errors and streamline the filing process.

Filing doesn't eliminate fiduciary responsibility

While many plan sponsors rely on third-party administrators, recordkeepers, accountants, or other professionals to prepare Form 5500, the plan sponsor remains responsible for ensuring the filing is accurate and submitted on time. Reviewing the completed filing before it is submitted is an important part of the plan oversight process and demonstrates good fiduciary governance.

The bottom line

Form 5500 is one of the most important annual compliance requirements for many retirement plans. Understanding what the form reports, preparing throughout the year, and working closely with experienced retirement professionals can help simplify the filing process while keeping your plan in good standing. Reach out to one of our advisors if you have questions about your filing responsibilities or upcoming deadlines.