Form 5500 Reporting
According to the IRS and the Department of Labor, ” The Form 5500 Series form is substantial compliance, research, and disclosure tool for the Department of Labor. “Also, it’s an important disclosure document for plan participants and beneficiaries. Finally, it serves as a great source of information and data for use by other Federal agencies, Congress, and the private sector. Also, it allows the department’s vital information in assessing employee benefit, tax, and economic trends and policies.
5500 Reporting Guidelines & Q&A
The U.S. Department of Labor, Internal Revenue Service, and the Pension Benefit Guaranty Corporation jointly developed the Form 5500 Series so employee benefit plans could utilize the Form 5500 Series forms to satisfy annual reporting requirements under Title I and Title IV of ERISA and under the Internal Revenue Code.
Who needs to file the form 5500 and when is it due?
- One-participant plan administrators may choose to complete the paper Form 5500-EZ.
- Form 5500-SF—Most small business retirement plans with fewer than 100 participants may complete and file Form 5500-SF electronically.
- Form 5500—Form 5500 must be completed by plans with 100 or more participants. It may only be completed and filed electronically through EFAST.
What if I missed the Deadline?
- If an organization finds a Form 5500 was due after the filing deadline has passed, what should they do? It is relatively common for employers to find a missed Form 5500 reporting responsibility, sometimes years down the road. At the same time, this discovery can come as a shock. No worries, the DOL has a program that enables employers to make their filings up to date.
When is it due and what are the late penalty's?
- Form 5500 must generally be filed by the last day of the seventh month following the end of the plan year, unless an extension has been granted. For calendar–year plans, the deadline is July 31.
- The IRS penalty for late filing of a 5500-series return is $25 per day, up to a maximum of $15,000. The DOL penalty for late filing can run up to $1,100 per day, with no maximum
Is there an extension because of COVID-19?
- There is a limited extension for filing Form 5500 granted in connection with the COVID-19 pandemic, but it does not extend the deadline for 2019 calendar year plans.
- Under guidance issued in April 2020, Form 5500 filings that would otherwise be due on or after April 1 and before July 15, 2020, are now due July 15, 2020. The relief, which applies under both the Code and ERISA, is automatic—no extension form, letter, or other request needs to be filed. The extension’s application to each of your plans depends on the plan year.