Key Takeaways
- Form 5500 is an annual report filed by employee benefit plans with 100+ participants.
- Form 5500-SF is for small plans (under 100 participants).
- Form 5500-EZ is for one-participant plans (solo 401k).
- Due 7 months after plan year end (July 31 for calendar-year plans).
- 2.5-month extension available via Form 5558.
- Failure to file can result in DOL penalties of up to $250/day.
Retirement Plans: Form 5500
Why This Matters for the Exam
Form 5500 is the annual report for qualified retirement plans, filed with both IRS and DOL. The exam tests which version to file based on plan size, deadlines, and penalties.
Expect at least 2-3 questions on Form 5500.
Form 5500 Versions
| Form | Participants | Who Files |
|---|---|---|
| Form 5500 | 100+ participants | Large plans |
| Form 5500-SF | <100 participants | Small plans |
| Form 5500-EZ | 1 participant (solo 401k) | Owner-only plans |
Which Form to File?
| Participants | Form Required |
|---|---|
| 1 (owner only) | 5500-EZ |
| 2-99 | 5500-SF |
| 100+ | 5500 |
Plans Covered
| Plan Type | Form 5500 Required? |
|---|---|
| 401(k) | Yes |
| Pension (defined benefit) | Yes |
| Profit-sharing | Yes |
| 403(b) | Yes (if ERISA-covered) |
| SIMPLE IRA | No (IRA-based) |
| SEP IRA | No (IRA-based) |
Filing Deadlines
| Plan Year | Due Date | Extension |
|---|---|---|
| Calendar year | July 31 | 2.5 months (Form 5558) → October 15 |
| Fiscal year | 7 months after year end | 2.5 months |
Automatic Extension
If the plan's tax return is extended, Form 5500 is automatically extended to the extended due date of the plan sponsor's return.
Penalties for Non-Filing
| Agency | Penalty |
|---|---|
| DOL | Up to $250/day, max $150,000 |
| IRS | Up to $250/day, max $150,000 |
| Total exposure | Up to $300,000 |
Late Filer Penalty Relief
The DOL offers a Delinquent Filer Voluntary Compliance (DFVC) Program:
| DFVC Reduced Penalty | Amount |
|---|---|
| Small plans | $10/day, max $750 |
| Large plans | $10/day, max $2,000 |
Form 5500 Contents
| Schedule | Contents |
|---|---|
| Schedule A | Insurance information |
| Schedule C | Service provider fees |
| Schedule D | DFE/participating plan info |
| Schedule H | Financial information (large plans) |
| Schedule I | Financial information (small plans) |
| Schedule R | Retirement plan information |
Real-World Scenario
Scenario: A small business has a 401(k) plan with 25 participants. The plan year is the calendar year.
- Form: Form 5500-SF (small plan, <100 participants).
- Due date: July 31.
- Extension: Form 5558 → October 15.
- If not filed: Penalties up to $250/day from both DOL and IRS.
On the Exam
Expect 2-3 questions on Form 5500, typically:
- Form Version Questions: "Which form does a one-participant 401(k) file?"
- Due Date Questions: "When is Form 5500 due for a calendar-year plan?"
- Penalty Questions: "What is the penalty for late filing?"
The key is to remember: 5500-EZ = solo, 5500-SF = small, 5500 = large. Due July 31. Penalty up to $250/day.
When is Form 5500 due for a calendar-year retirement plan?
Which form does a one-participant 401(k) plan file?
What is the maximum daily penalty for late Form 5500 filing?