Form 5500

What is Form 5500?

Form 5500 is the annual report employee benefit plans file with the Department of Labor, covering plan finances, participant counts, and compliance. Most 401(k) plans file it. Small plans may file the simplified 5500-SF, and one-participant plans use the 5500-EZ once assets exceed $250,000. It is an information return, not a tax return, but the penalties for missing it are among the harshest in the compliance calendar.

Deadlines and the penalty exposure

The form is due the last day of the seventh month after the plan year ends, which is July 31 for a calendar-year plan, with an extension available. Penalties accrue per day, per plan, and can run into six figures for a plan that went unfiled for years. The Delinquent Filer Voluntary Compliance Program caps penalties for firms that come forward on their own, which is almost always cheaper than waiting to be found.

Who prepares it and what they need

Your recordkeeper or third-party administrator usually prepares the form, but the plan sponsor signs and remains responsible. They will need participant counts at the start and end of the year, contribution totals, distributions, and the fidelity bond amount. Firms that switch payroll or recordkeeping providers mid-year are the ones who most often end up with a gap, because neither provider treats the filing as theirs.