Understanding and Completing the Form 5500

Form 5500, Annual Return/Report of Employee Benefit Plan, is the form used to file an employee benefit plan’s annual information return with the Department of Labor (DOL).  

Being prepared to electronically sign the Form 5500 will ease stress and help avoid costly penalties that can be incurred if not filed in a timely manner. Here are a few tips to ease the pain of filing yet another form with the regulatory agencies.

Who has to file? 

The sponsor of the plan or arrangement subject to the Employee Retirement Income Security Act (ERISA) must file the Form 5500. Plans subject to ERISA can include, but are not limited to, the following:

• Profit sharing plans, 401(k) plans, money purchase plans, stock bonus plans
• Certain annuity arrangements
• Individual retirement arrangements established by employers
• Church pension plans that elect to be covered by ERISA
• Certain welfare benefit plans

When is the deadline?

The Form 5500 must be filed no later than the last day of the seventh month after the Plan Year End. For calendar year plans, this means July 31 (or the next business day if it falls on a weekend). However, a Form 5558 can be filed for an automatic 2 ½ month extension (for a calendar year plan, this deadline is October 15^th). 

Who signs?

All plan sponsors and plan administrators who sign the Form 5500 must have his or her DOL credentials. As long as the signer remains the same, the User ID and PIN received from the DOL will remain the same. If there is a new signer, the DOL credentials can be obtained by going to www.efast.dol.gov, and click “Register” on the Welcome screen. Ensuring that the correct credentials are in place will begin the signing process with ease.

How is the Form 5500 filed?

All Form 5500 Annual Returns/Reports of Employee Benefit Plan and all Form 5500-Short Form Annual Returns/Reports of Small Employee Benefit Plan and any required schedules and attachments, must be completed and filed electronically. It’s important to understand how to login to electronically sign the forms. There are hundreds, if not thousands, of signers trying to get on the website to meet the deadline so waiting until the last week is not advised. Avoid undue stress and sign as soon as possible. 

If you have questions about signing, contact your Account Manager with Alliance Benefit Group at 1-800-898-9344 and they will be happy to assist you!

The Author: Lisa Bjelland

Audit Analyst

abgncs.com/retirementadministration

LBjelland@abg-mn.com

Disclaimer: This blog is of an informative nature and should not be taken as advice. Please work with the appropriate parties for those services.