WHAT IS A FORM 5500:

When an employer maintains a qualified retirement plan covered by ERISA, the employer maintaining the pension or welfare benefit plan must file a Form 5500 to report information on the qualification of the plan, its financial condition, investments and the operations of the plan.

TYPES OF FORM 5500’S AND THEIR USES:

Form 5500EZ – For a plan covering only owners or partners and their spouses with assets over $250,000

Form 5500SF – All plans not required to file under a Form 5500-EZ or 5500.

Form 5500 – For plans with more than 100 employees at the beginning of the year.

What is the 80/120 rule?
According to the 80/120 rule, if a benefit plan has between 80 and 120 participants at the beginning of the plan year, the employer can elect to file in the same category of Form 5500 as it did in the previous year.

DUE DATES:

The last day of the seventh month after the plan year ends. There may be other forms to be submitted with the 5500 that have other due dates, we will not expand on that in this blog.

EXTENSIONS:

The Form 5558 is the name of the Form 5500 extension. The extension must be filed on or before the due date of the 5500 and provides an extra 2.5 months to file.

For a plan year ending 12/31, the normal 5500 due date is 7/31 following the plan year end. With an extension, the due date would be 10/15 following plan year end.  Some filers may get an automatic extension due to their federal employer income tax extension.

WHAT INFORMATION IS NEED TO COMPLETE THE FORM 5500:  

This is very high level, and some plans may need additional information. The basics include plan and company demographics, participant account balance information and plan financials.

WHEN IS A FORM 5500 AND RETIRMENT PLAN AUDIT REQUIRED?

Starting with the 2023 plan year, when the number of participants with a balance at the beginning of the plan year exceeds 100 for a new plan or 120 for a plan using the 80/120 rule to remain a short form non-audited 5500.

HOW DO I FIND A RETIRMENT PLAN AUDITER WHEN REQUIRED?

If ORBA is not currently acting as your Third-Party Administrator (TPA) on your plan, we offer Employee Benefit Plan audits and would be happy to provide a quote. Alternatively, the DOL has provided a guide for employers to find a plan auditor found here. 

If you would like additional information or have any questions, please contact Heather Smelley  at [email protected] or 312.670.7444. Visit ORBA.com to learn more about our Employee Benefit Plans Services.