Frequently Asked Questions

The Form 5500 Series is documentation designed to satisfy the annual reporting requirements under Title I and Title IV of The Employee Retirement Income Security Act (ERISA) and the Internal Revenue Code (IRC). By completing and filing the correct version of Form 5500, plan sponsors  the government with key details about their plan’s financial condition, investments and operations. The objective is to ensure that employee contributions and investments remain protected.

As a general rule, most employee benefits plans are required to file Form 5500 each year. This includes almost all retirement plans as well as some health & welfare plans. The specific filing requirements depend on the plan's size and type.

Filing for the Form 5500 is due seven months after the end of the plan year. For example, July 31 for a calendar year plan. If the filing due date falls on a Saturday, Sunday, or Federal holiday, the form may be filed on the next day that is not a Saturday, Sunday, or Federal holiday.

The "80-120 Rule" allows a retirement plan with between 80 and 120 participants on the first day of the plan year to file the Form 5500 in the same category (i,e,, large or small plan) as the prior year return.

This rule makes it possible for large plans with between 100 and 120 participants  to avoid the audit requirement.

Plan sponsors may apply for a one-time extension, which will give them an additional two-and-a-half months from the original due date to file Form 5500.  This will result in the due date falling on the 15th of any given month (October 15 for calendar year plans).

The DOL and IRS may impose penalties or fines if a plan sponsor fails or refuses to file a complete return or if the Form 5500 is rejected for insufficient information.  Additional penalties may be incurred for willful violations, which include making false statements.  Filings will be rejected by the DOL if required questions are left unanswered.

Yes, ERISA requires that any fiduciary or agent with authority to handle plan funds be covered by a fidelity bond to help safeguard the assets from fraud, dishonesty and mismanagement.  Bond coverage is set at either $500,000 or 10% of plan assets at the beginning of the plan year, whichever is lesser.

The SAR is an ERISA required document that summarizes the information reported on the Form 5500 and schedules. The SAR must be distributed to each participant and their beneficiaries receiving benefits under the plan no later than two months following the Form 5500 filing deadline, unless the the plan has filed for an extension, in which case you have two months to distribute from the extension date.