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Form 5500

5500Tax Group Quick Reference Guide to Welfare Plans

June 12, 2023September 11th, 2023

When is the Form 5500 required?

  • When a plan has 100 or more employee participants at the beginning of a plan year, unless it meets an exception
  • When a plan is funded through a trust, regardless of the number of participants

When is Form 5500 due?

  • The last day of the seventh month following the plan year end (e.g. plans ending 12.31 are dye the following 07/31)
  • A one-time additional 2 1/2 months extension of time to file can be requested by filing Form 5558

What Form 5500 attachments are required

  • Insured benefits are required to attach a Schedule A for each contract
    multiple schedule attachments are required if the plan is funded through a trust

What are the Form 5500 late or non-filer penalties?

  • IRS Late Filer: $250 per day late, up to a maximum of $150,000
  • DOL Late Filer: $2,586 per day with no limit (without consideration of an extension, indexed annual for inflation)   
  • DFVC Program can be used to reduce penalties, but not if DOL has notified the plan sponsor that the filing is late

How do you determine how many welfare plans you have?

  • You must review the governing documents and actual operations to determine whether welfare benefits are being provided under a single plan or separate plans
  • In the absence of a wrap plan document, usually the number of separate insurance contracts determines the number of plans

Does my Cafeteria Plan have to file Form 5500?

  • The Internal Revenue Service (IRS) no longer requires a Form 5500 filing for Section 125 – Cafeteria Plans, but if you have a Medical Reimbursement Feature associated with your plan and 100 or more employees participating in the reimbursement feature, the DOL will require that you file Form 5500

Why does the government require Form 5500 to be filed?

  • The Department of Labor, Internal Revenue Service, and the Pension Benefit Guaranty Corporation jointly developed the Form 5500 series so employee benefit plans could utilize the Form 5500 to satisfy annual reporting requirements under Title I and Title IV of ERISA and under the Internal Revenue Code.
  • The Form 5500 Series is an important compliance, research, and disclosure tool for the Department of Labor, a disclosure document for plan participants and beneficiaries, and a source of information and data for use by other Federal agencies, Congress, and the private sector in assessing employee benefit, tax, and economic trends and policies.  The Form 5500 Series is part of ERISA’s overall reporting and disclosure framework, which is intended to assure that employee benefit plans are operated and managed in accordance with certain prescribed standards and that participants and beneficiaries, as well as regulators, are provided or have access to sufficient information to protect the rights and benefits of participants and beneficiaries under employee benefit plans.

What are some types of welfare benefit plans that are exempt from the requirement to file Form 5500?

  • Government plans
  • Church plans as defined in ERISA Section 3(33)
  • Certain plans participating in a Group Insurance Arrangement
  • Top-Hat plans
  • Welfare plans maintained outside the United States
  • Employee benefit plans maintained only to comply with workers’ compensation, unemployment compensation, or disability insurance laws

W Wang-L&W Infoserve Co.

In June 2022, we received IRS notices with huge penalties (~$200K) as they didn’t receive F5500 – Annual Report of Employee Benefit Plan for 2019 and 2020 for our S Corporation.  We immediately started working with Amy Boyd from 5500 Tax Group.  Amy answered our questions with great patience, provided clear guidance and took appropriate actions on communicating with IRS.  With a lot of time and effort, she helped us resolve this issue that gave us so much stress.  We are grateful for her assistance and highly recommend her services.  She is professional, efficient, and friendly.

E Powell-Seubert & Associates, Inc.

Ann at 5500 Tax Group has been a great partner for the past twelve plus years.  We find the process in working with 5500 Tax Group for client Form 5500 filing requirements has been simple, efficient, and timely. Ann has been particularly helpful in guiding mutual clients through the Department of Labor Delinquent Filer Voluntary Compliance Program (DFVCP) with an easily understood step-by-step explanation for all parties involved. We look forward to working with Ann for many years to come.

S Herrle-Henderson Brothers, Inc.

Ann Myers has been a trusted advisor and our Form 5500 filing partner for well over 15 years.   As leading experts in the Employee Benefits industry with a significant number of local and national clients, we rely heavily on Ann to prepare a large number of health and welfare 5500 forms every year for our clients.   Regardless of whether she is providing guidance for a client that is filing for the first time, suggesting changes on what should be reported in a 5500 form, providing strategy to remedy a noncompliant plan, or walking an employer through the DFVCP filing process, we know our clients are receiving the best advice from one of the most knowledgeable experts in the industry.

Briones, Briones International

Amy, Thank you for years of extremely knowledge and professional guidance regarding retirement plans including the filing of form 5500.  You have made the myriad of IRS regulations and alphabet soup understandable for a civilian. I am truly grateful for your patience and never hesitating to answer dumb questions.  Any client seeking your guidance and advice will be beyond pleased with your services.

M Fair-USI Insurance Services

Our team has worked with Ann Myers and the 5500 Tax Group for many years. Ann makes the whole 5500 process as painless as possible and personally engages with each client. We have continued to use Ann for the “personal” touch and level of details that Ann brings to her work. Our team has 100% confidence in Ann executing on filings, details and deadline. Ann brings a positive attitude, years of experience and her expertise to every engagement. Our client and team enjoy working with Ann and USI would absolutely serve as a reference.

A Cox-Wabtec

Wabtec has worked with Ann Myers of the 5500Tax Group, Inc. for the past 15 years.  She manages all of the details for our 5500 preparation.  She prepares the 5500s for our Pension Plan, Savings Plan, and various Health and Welfare plans.  She also completes the PCORI filings and Summary Annual Reports.  All is done efficiently, effectively, and reasonably priced.  Ann coordinates with our auditors, record keepers, and our ERISA attorneys to gather all required information and get any answers required.  Definitely recommend!