Form 5500 annual return or report filing is due on the last day of the seventh month after the plan year ends. The form also has an optional two-and-a-half-month extension. For plans that follow a calendar year, Form 5500 for the prior year is due on July 31, with an extension available to October 15. Most employers will file their Form 5500 under Schedule A.
But there’s also a Schedule C for Form 5500. A carrier or TPA generates a Schedule C if the benefit is self-insured or level-funded, and the Plan Sponsor paid the service provider fees. Schedule Cs for the Form 5500 are used if the fees to a provider were at $5,000 or more, and if a large funded plan covered the service provider fees.
The maximum penalty for incorrectly or not filing Form 5500 is rising to $2,140 per day, up from $2,097 per day, for penalties assessed after January 2, 2018, and for associated violations that occurred after November 2, 2015. For those who don’t file on time, there is an opportunity to pay reduced civil penalties for voluntarily complying with the annual reporting requirements called the Delinquent Filer Voluntary Compliance Program (DFVCP).
Plan administrators are eligible to pay these reduced penalties under the program if the required filings under the DFVCP are made before the date on which the administrator is notified in wiring by the Department of Labor (DOL) of a failure to file a timely annual report under Title 1 of ERISA.
Big Changes Ahead?
In 2016, the Department of Labor and Internal Revenue Service proposed significant revisions to Form 5500. These revisions would greatly expand the type and amount of information being collected, including:
- Expanded information about group health plans
- Improved service provider fee information
- More-detailed financial reporting
The most significant impact, if these changes are approved, will be on small health and welfare plans – those with fewer than 100 participants. Many of these small plans are currently exempt from Form 5500 reporting requirements, but that exemption would no longer apply if these changes are implemented.
These proposed changes were supposed to take effect for the plan year 2019 reporting but are suspended for now. It’s estimated the agencies will look to pick these changes up again in 2020, but nothing official has been announced.
You can find more information about everything Form 5500-related, here.
Or, contact our compliance expert, Roxy Kolev at [email protected] or at 402.289.1046.