Filing a 5500 is mandatory for certain retirement plans.
Most employer-sponsored retirement plans and certain health and welfare benefit plans that fall under the Employee Retirement Income Security Act (ERISA) are required to file a Form 5500 each year. Here's a breakdown of which plans are subject to this requirement and the exceptions.
Employer-Sponsored Plans Subject to Form 5500
- 401(k) plans
- 403(b) plans (under Code section 403(b)(1) and custodial accounts under 403(b)(7) for regulated investment company stock, if subject to ERISA)
- Pension plans
Exceptions
Plans exempt from ERISA, such as church plans or government plans, generally are not required to file Form 5500. However, 403(b) plans under Code section 403(b)(1) and custodial accounts under 403(b)(7) for regulated investment company stock, if subject to ERISA, are still subject to this requirement.
Specific Cases
- One-participant plans or foreign plans that are required to file must use Form 5500-EZ.
- Non-calendar year plans file Form 5500 by the last day of the seventh month after their plan year ends, while calendar year plans file by July 31 following the plan year end.
Additional Details
- Large fully insured welfare plans (with 100+ participants) must file Form 5500 and provide a Summary Annual Report (SAR) to participants.
- Large unfunded welfare plans are subject to Form 5500 filing but exempt from the SAR requirement.
- Self-insured, unfunded plans are exempt from the SAR requirement; their Form 5500 filing obligation depends on other criteria.
Exemptions
Certain welfare plans, church plans, government plans, and one-participant plans are exempt from the Form 5500 filing requirement, with specific exemptions for certain welfare plans, church plans, government plans, and one-participant plans using specialized forms.
Additional Requirements
- Any administrator or sponsor of an employee benefit plan subject to ERISA must file a Form 5500 each year.
- Form 5310-A is required for plan mergers, consolidations, spinoffs, or transfers.
- Form 8955-SSA is required for plans with separated participants with deferred vested benefits.
Exemptions from Form 5500
- Master trust investment accounts, group insurance arrangements, 103-12 investment entities, pooled separate accounts, defined contribution group reporting arrangements, and common/collective trusts are not subject to filing a Form 5500.
- SIMPLE 401(k) plans, if subject to ERISA, are subject to filing a Form 5500.
- Multiemployer plans and SEP and SIMPLE IRA plans are subject to filing a Form 5500, unless exempt under special rules.
Small Plans
Small pension and welfare plans (fewer than 100 participants) may be eligible to file the simplified Form 5500-SF if they meet additional requirements.
Foreign plans maintained outside the U.S. for nonresident aliens generally file Form 5500-EZ if required, but are exempt from filing a Form 5500. Plans covering residents of U.S. territories (Puerto Rico, U.S. Virgin Islands, Guam, Wake Island, American Samoa) are subject to filing a Form 5500, if not otherwise exempt.
In summary, the Form 5500 filing obligation covers most large, employer-sponsored retirement and benefit plans subject to ERISA, with specific exemptions for certain welfare plans, church plans, government plans, and one-participant plans using specialized forms.
Businesses administering 401(k), 403(b), and pension plans, regardless if they are subject to ERISA or not, are required to file a Form 5500 each year, except for certain exemptions. Personal-finance investors should be aware that while church plans and government plans are generally exempt from filing Form 5500, 403(b) plans under Code section 403(b)(1) and custodial accounts under 403(b)(7) for regulated investment company stock, if subject to ERISA, are still subject to this requirement.
