Form 5500 is a report that provides information about a companys employee benefits, including self-funded plans, retirement plans, and welfare benefit plans such as dental, health, and life insurance. It is part of the Employee Retirement Income Security Acts (ERISA) reporting and disclosure framework, which is intended to ensure that employee contributions and investments remain protected. The Form 5500 is filed annually with the Department of Labor (DOL) and contains information about a plans financial condition, investments, and operations. The correct version of Form 5500 to file depends on the type and size of the plan. Generally, any business that sponsors a retirement savings plan must file a Form 5500 each year that the plan holds assets. The three variations of the form are as follows:
- Form 5500: applies to most public and private sector businesses providing plans to 100 or more participants.
- Form 5500-SF: applies to companies that sponsor plans with fewer than 100 participants at the start of the year.
- Form 5500-EZ: applies to "one-participant" plans (owners/partners and their spouses) or foreign plans.
Filing Form 5500 is the responsibility of the plan administrator, typically someone in the companys finance, HR, or operations department. Understanding Form 5500 is crucial to businesses with retirement plans, as it is among the many fiduciary responsibilities that must be reported on the form.
