Stay Compliant with Form 5500: Key Dates and Steps

Deadline Approaching for Form 5500 Filing: Are You Ready?

As the deadline for submitting Form 5500 looms, it's important for employers to ensure their employee benefit plans are in line with compliance standards. This form is pivotal for welfare benefit plans with 100 or more employees enrolled at the start of the plan year. Form 5500 acts as a disclosure document required by both the Department of Labor (DOL) and the Internal Revenue Service (IRS).

Essential Dates to Mark:

• Form 5500 Filing Deadline: July 31, 2025, for plans ending on December 31, 2024.

For plans operating on a calendar year, this is the critical date. Ensure you're aware of your specific plan’s year-end and any possible filing extensions.

Steps to Maintain Compliance:

• Determine Filing Requirements: Verify if your plan needs to file Form 5500. Typically, plans with 100 or more participants must file.

• Gather Necessary Documents: Collect enrollment data and Schedule A reports from your benefit providers.

• Timely Filing: If needed, request an extension before the deadline to gain an extra 2.5 months for submission.

• Adhere to Compliance Regulations: Ensure compliance with ERISA, IRS, and DOL regulations. Errors or delays in filing can lead to severe penalties. If multiple service providers or plan types are included, verify that all information is accurately reported.

Importance of Compliance:

Failing to meet the 5500 filing requirements can result in penalties of up to $2,739 per day with no cap. Under ERISA §501, anyone who deliberately breaches Part 1 of Title I of ERISA, which encompasses Form 5500 reporting rules, could face fines up to $100,000 or imprisonment.