Form 5500

Under ERISA, See the Geek Out! ERISA Introduction for more detailed information about plans that are covered by ERISA. and the Internal Revenue Code employee benefit plans generally are required to file the Form 5500, ‘‘Annual Return/ Report of Employee Benefit Plan,’’ together with any required attachments and schedules.  The Form 5500 is not a tax return.  It is an informational return, required by and filed with, the Department of Labor (DOL).  It also serves as a disclosure document for plan participants and beneficiaries, and an important source of information and data for use by other Federal agencies.

Small Plan Exemption

Most plans that cover less than 100 employees at the beginning of the plan year and are unfunded are not required to file Form 5500 for that plan year. This exemption applies to both fully insured and self-insured plans.

If any plan is FUNDED, Funded plans must hold their assets in a trust it will NOT qualify for the small plan exemption and must always file a Form 5500, regardless of its size. Please note that most plans are unfunded, meaning that benefits are paid as needed directly from the general assets of the employer or the employee organization that sponsors the plan.

Schedules

Below are the various schedules to be filed with Form 5500.  The type of plan involved determines which schedules are required.  Unfunded welfare benefit plans that are not insured (“self-insured”) and pay claims from the general assets of the plan sponsor are not required to file many of the schedules referenced herein.

We have noted in italics where the various schedules are typically required for welfare benefit plans.  Please be sure to check with your Form 5500 preparer or legal counsel to confirm which schedules to attach to your Form 5500 filing.

Schedule A – Insurance Information (Typically required for a fully-insured welfare benefit plan)

• Schedule A must be completed if any benefits under an employee benefit plan are provided by an insurance company, insurance servicer, or other similar organization.  This includes investment contracts with insurance companies.
• Insurance premiums, broker commissions and year-end enrollment information are reported on Schedule A.
• Self-insured plans are required to attach Schedule A for stop-loss coverage ONLY IF the plan itself is the named policyholder of the stop-loss policy.  Typically, a plan is the policyholder of a stop-loss policy only when it is funded through a trust.
• Schedule A must be attached to Form 5500 and has the same due date as the Form 5500.

Schedule C – Service Provider Information (Typically required only for a FUNDED welfare benefit plan (i.e., has a trust or otherwise pays service providers from plan assets)

• Schedule C must be completed if a service provider was paid $5,000 or more in compensation, directly or indirectly from the plan, or an accountant or enrolled actuary was terminated during the reporting year.
• Schedule C is NOT required for payments made by the EMPLOYER for plan-related expenses.  Schedule C is required only when payments are made from the PLAN.  Because the employer makes all payments to service providers for an unfunded plan, a Schedule C is typically required only for funded plans.
• Schedule C must be attached to Form 5500 only (not the Form 5500EZ) and has the same due date as the Form 5500.

Schedule D – DFE/Participating Plan Information (Typically NOT required for a welfare benefit plan)

• Form for reporting information about direct filing entities (DFEs) and participating plans.
• Part I of Schedule D must be completed if a plan participates in CCT, PSA, MTIA, or 103-12 IE.
• It must be filed 9 1/2 months after close of plan year – no extension is permitted.
• It must be attached to Form 5500.

Schedule G – Financial Transaction Schedules (Typically NOT required for a welfare benefit plan)

• Schedule G must be completed if a large plan, MTIA, 103-12 IE, or GIA when Schedule H lines 4b, 4c, and/or 4d are checked “yes”.
• Schedule G must be completed if Schedule H lines 4b, 4c, or 4d are required to be marked “Yes”.
• It must be attached to Form 5500 and has the same due date as the Form 5500.

Schedule H – Financial Information (Large Plan) (Typically required only for a FUNDED welfare benefit plan (i.e., has a trust or otherwise pays benefits from plan assets)

• Schedule H must be completed for large benefit plans (more than 100 participants) and for all DFE filings.
• It must be attached to Form 5500 and has the same due date as the Form 5500.

Schedule I – Financial Information (Small Plan) (Typically required only for a FUNDED welfare benefit plan (i.e., has a trust or otherwise pays benefits from plan assets)

• Schedule I must be completed for small benefit plans (fewer than 100 participants).
• It must be attached to Form 5500 and has the same due date as the Form 5500.

Form 5500-SF

• Introduced by the Pension Protection Act of 2006, Form 5500-SF was created to provide for simplified reporting for small plans (fewer than100 participants).  SF stands for “short form”.
• Generally, only funded welfare benefit plans with fewer than 100 covered employees will utilize Form 5500-SF.   Again, “funded” typically means a plan with a trust or otherwise pays benefits from plan assets.
• Form 5500-SF may be filed by a one-participant plan, instead of Form 5500-EZ, if the specific Form 5500-SF requirements are satisfied.

Form 5500-EZ

• Titled appropriately as “Annual Return of One-Participant (Owners and Their Spouses) Retirement Plan,” it is used by one-participant plans that are not subject to Title I of ERISA (and that are not eligible or choose not to file Form 5500-SF), to satisfy certain annual reporting and filing obligations imposed by the Internal Revenue Code.
• It is cannot be filed electronically with the DOL; instead, it is filed on paper with the Internal Revenue Service.
• It cannot be filed under the DOL Delinquent Filer Voluntary Correction Program; however, it can be filed under the IRS penalty relief program for late filings.

Form 5558

• Titled, “Application of Extension of Time to File Certain Employee Plan Returns”, it is a request for an automatic extension of time to file Form 5500.
• Maximum extension is 2 1/2 months.
• Form 5558 is filed in paper form by the Plan Administrator with the IRS; however, no signature is required.
• It must be filed before the original deadline for filing Form 5500.

Notice

• A Summary Annual Report (SAR) must be distributed to all plan participants within nine (9) months after the close of the plan year.  The SAR is a narrative statement of the more important plan information contained in the Form 5500.
  • A totally unfunded (i.e., self-insured) plan that does not provide any benefits through insurance is not subject to the SAR requirements.
• A copy of the Form 5500 must be provided to participants upon written request.

Additional Resources

Form 5500 and Filing Instructions

EFAST ERISA Electronic Filing System

Reporting and Disclosure Guide

Law References
ERISA §§103-104
29 CFR 2520.104-46 (auditor’s report)
29 CFR 4065 (PBGC) & 701 & IRC §§6039D & 6058