The Form 5500 series is a component of the Employee Retirement Income Security Act’s (ERISA) reporting and disclosure framework. The Form is used to report information on the qualification of the plan, its financial condition, investments, and its operations. It also guarantees that participants, beneficiaries, and regulators have access to essential information to protect those involved in the plans. All health and welfare plans with more than 100 participants must file Form 5500 electronically via EFAST2 by the last day of the seventh month following the end of the plan year, typically July 31 for calendar-year plans.
Noncompliance penalties are significant and adjusted annually for inflation. To promote compliance, there is a delinquent filer voluntary compliance program allowing plan administrators who missed the deadline to comply with reporting requirements and pay a reduced penalty, thereby avoiding steeper civil penalties.
Employers can obtain an automatic extension to file Form 5500 by filing IRS Form 5558. The extension will allow returns/reports to be filed up to the 15th day of the third month after the normal due date. Due to administrative issues within the IRS, Form 5558 will be postponed for electronic filing through EFAST2 until Jan. 1, 2025. Plan sponsors and administrators should continue to use a paper Form 5558 to request a one-time extension.
EMPLOYER CONSIDERATIONS
- Health and welfare plans with more than 100 participants must file Form 5500.
- Submit Form 5500 and all required schedules electronically through the EFAST2 system by the last day of the seventh month following the end of the plan year, or by July 31 for calendar-year plans.
- Review plan operations and documents to ensure ongoing compliance with ERISA requirements. Conduct internal audits to verify that all filings are accurate and complete.
- Ensure that plan participants and beneficiaries are informed about the filing and their rights under the plan.