What is Form 5500?

Form 5500 is an annual report to be filed with the Department of Labor (DOL), that contains information about employee health and welfare benefit plans. The objective of this form is to disclose the financial conditions, investments, and operations of ERISA plans to the Federal government and plan participants. 

There are three versions of the Form 5500, each with different filing requirements. Form 5500 is used for plans that have 100 or more participants. If the plan has fewer than 100 participants, only the short form, Form 5500-SF, must be completed. For non-resident aliens, Form 5500-EZ is used. All necessary schedules and attachments must be filed simultaneously with the main Form 5500. Filing these forms is the responsibility of the plan administrator, who must also keep a copy of Form 5500 and all schedules and attachments.

What are the associated penalties and risks?

Unfortunately, most employers don’t realize that they have missed a Form 5500 filing deadline until they receive a letter from the IRS or DOL about it. This can be more than a year after the 5500 was due, by when substantial penalties will have already accrued. The IRS penalty for late filing of a 5500 return is $25 per day, up to a maximum of $15,000. In addition, the DOL penalty for late filing can run up to $1,100 per day, with no maximum. Also, entering incorrect information, or accidentally leaving a field blank when filling out Form 5500, may result in an employee plan compliance check by the DOL.

How can DFIS help?

Davidow Financial & Insurance Services, Inc. can help you effectively prepare to file Form 5500 and minimize your plan-related workload and risk. We have the skills, experience, and expertise needed to prepare and file the IRS 5500 form for all Plan Sponsors.

We ensure our clients have the necessary information to ensure filings are completed on-time and without hassle. Our services include:

• Form 5500 preparation services and planning
• Generating signature ready, machine-readable Form 5500 complete with all required schedules
• Prepare and provide the Summary Annual Report (SAR) for distribution to your employees
• Form 5500 filing extensions (Form 5558)
• Amend past incorrect or insufficient filings (DFVC)
• Assistance with all IRS and DOL compliance related inquiries and audits.

Don’t take the risk of not filing your 5500 Form or filing it late or filing it with errors. Let DFIS take this risk off of you and experience the difference today. Contact us to learn know more about our Form 5500 Filing services.