What Is a Form 5500 and How Do I File It?

Form 5500 is an annual return or report required for employee benefit plans by the Department of Labor (DOL), the Internal Revenue Service (IRS), and the Pension Benefit Guaranty Corporation (PBGC). Its primary purpose is to ensure transparency and accountability in the operation of these plans. This filing helps government agencies monitor compliance with the Employee Retirement Income Security Act of 1974 (ERISA), a federal law that sets minimum standards for most voluntarily established retirement and health plans in private industry. The information submitted provides a comprehensive overview of a plan’s financial condition, investments, and operations.

Understanding Form 5500 Filing Requirements

Most employee benefit plans covered by ERISA must file a Form 5500 annually. This includes various types of plans, such as 401(k) plans, defined benefit pension plans, and certain welfare benefit plans like health and dental plans. The specific version of the Form 5500 required depends on the number of participants in the plan at the beginning of the plan year.

Plans with fewer than 100 participants at the start of the plan year may qualify as “small plans” and can often file Form 5500-SF, the Short Form. To use this streamlined form, the plan must meet additional criteria, such as holding at least 95% of its assets in “eligible investments” like publicly traded securities or bank accounts. Plans that do not meet these conditions generally must file the standard Form 5500 Annual Return/Report.

Plans with 100 or more participants at the beginning of the plan year are considered “large plans” and are required to file the full Form 5500 Annual Return/Report. These plans typically need to include an audit report prepared by an independent qualified public accountant.

A specific type of plan, the “one-participant plan,” has its own filing requirements. This typically refers to a plan covering only the owner, or the owner and their spouse, with no employees. These plans usually file Form 5500-EZ, provided their total plan assets exceed $250,000 at the end of the plan year. If total plan assets are $250,000 or less, a Form 5500-EZ filing is not required for that year.

Certain plans are exempt from Form 5500 filing requirements. These include governmental plans, church plans, and unfunded excess benefit plans.

Essential Information for Form 5500 Preparation

Preparing a Form 5500 requires gathering and organization of specific data points throughout the plan year. The process begins with identifying the plan’s legal name, its plan sponsor’s Employer Identification Number (EIN), and the plan number. The exact plan year must also be clearly established, as all financial and participant data will relate to this specific period.

Comprehensive financial information forms a significant portion of the required data. This includes detailed statements of plan assets at both the beginning and end of the plan year, encompassing various investment types and their valuations. Information on plan liabilities, such as outstanding benefit payments, must also be accurately reported. All income generated by the plan, including employer and employee contributions, as well as investment earnings, needs to be tracked. Conversely, all expenses, such as administrative fees, investment management fees, and benefit payments made to participants, require precise documentation.

Detailed participant information is another core requirement. Filers must report the total number of participants at the beginning and end of the plan year. This count includes active employees, retired individuals receiving benefits, and former employees who have vested benefits but are no longer working for the employer. Distinguishing between these participant categories is necessary for accurate reporting.

Information about all service providers to the plan must also be compiled. This includes details for third-party administrators (TPAs), recordkeepers, custodians, investment managers, and any other entities providing services to the plan. The compensation paid to each of these service providers for the plan year must be reported. The plan administrator and other fiduciaries involved in the plan’s operation must also be clearly identified on the form.

The Form 5500 Submission Process

Once all necessary information has been gathered and the Form 5500, along with its required schedules and attachments, has been completed, the submission process is largely standardized. The Department of Labor mandates that Form 5500, Form 5500-SF, and most Form 5500-EZ filings be submitted electronically through their EFAST2 (ERISA Filing Acceptance System) system. This electronic filing system streamlines the submission and processing of these reports.

The initial step for electronic submission involves obtaining appropriate credentials for the EFAST2 system, which often requires registration and setting up an account. After gaining access, the completed form and any necessary attachments, such as the Independent Qualified Public Accountant (IQPA) audit report for large plans, are uploaded. The plan administrator or an authorized representative then provides an electronic signature to certify the accuracy and completeness of the filing. Upon successful submission, the system typically provides a confirmation, which should be retained for record-keeping purposes.

The standard deadline for filing Form 5500 is the last day of the seventh month following the plan year end. For example, a plan operating on a calendar year basis (January 1st to December 31st) would typically have a filing deadline of July 31st of the following year. If this deadline cannot be met, an automatic 2.5-month extension can be obtained by filing IRS Form 5558, “Application for Extension of Time To File Certain Employee Plan Returns,” before the original due date. For a calendar year plan, this would extend the deadline to October 15th.

Consequences of Non-Compliance

Failing to file Form 5500 on time, submitting an incomplete form, or providing inaccurate information can lead to significant penalties from both the Department of Labor (DOL) and the Internal Revenue Service (IRS). The DOL can assess civil penalties for delinquent or non-existent filings, potentially reaching up to $2,739 per day as of 2025. For non-filers not using the Delinquent Filer Voluntary Compliance Program (DFVCP) and who have been notified by the DOL, a penalty of $780 per day, up to $78,000 per year, may be assessed. The IRS may also impose penalties for late filing of the Form 5500 series, which can be $25 per day up to a maximum of $15,000. Severe or repeated non-compliance could jeopardize the tax-qualified status of the plan, resulting in adverse tax consequences for both the employer and participants, and may trigger audits or investigations.

To mitigate penalties for past filing failures, both agencies offer voluntary correction programs. The DOL’s Delinquent Filer Voluntary Compliance Program (DFVCP) allows plan administrators to pay reduced civil penalties, such as a basic penalty of $10 per day for delinquent filings, with a maximum of $750 for a small plan and $2,000 for a large plan for a single late annual report. While DFVCP participation generally does not relieve IRS penalties, the IRS often waives its late filing penalties for filers who satisfy DFVCP requirements and submit any missing Form 8955-SSA, “Annual Registration Statement Identifying Separated Participants With Deferred Vested Benefits,” directly to the IRS. For plans not subject to Title I of ERISA, like most one-participant plans filing Form 5500-EZ, the DFVCP is not applicable, but the IRS has a separate Form 5500-EZ Late Filer Program for penalty relief. The IRS also offers the Employee Plans Compliance Resolution System (EPCRS), which provides avenues for plan sponsors to correct plan qualification failures and avoid disqualification.