ERISA 101: Form 5500 Center of Excellence

Form 5500 filing is not for the faint of heart, it’s complicated and time consuming. Alera Form 5500 COE is a team of subject matter experts who will provide the knowledge and expertise to complete the plan sponsors mandatory filing requirement using a sophisticated software system with impeccable validation processes.

Do I need to file a Form 5500?

Health & Welfare Plans with 100 or more participants at the start of the plan year are required to file Form 5500 and Schedule A and/or C by 7 months after the end of the Plan year, for calendar year plans, the filing due date is July 31st. There are exceptions such as health and welfare plans sponsored by a governmental entity or by a church.

What health & welfare plans are in a 5500 filing? One 5500 or many?

  • Health Plans: Insured and Self-Insured
  • Dental
  • Vision
  • Group Term and Supplemental Life/A&D
  • Group Long-Term Disability
  • Voluntary Plans such as STD/LTD
  • Flexible Spending Accounts (excluding dependent care)
  • Health Reimbursement Arrangements
  • Employee Assistance Plans (EAPs)

Many plan sponsors use a “Wrap” Summary Plan Description so that the plan only files one Form 5500 under one plan number (which reduces filing workload and potential penalties). However, if using a Wrap SPD and one benefit hits 100+ participants, you must file ALL Wrap SPD benefits. Penalties for non-compliance can be up to $1,100 per day!

Thanks for telling me… but I didn’t file!

It’s not too late to take corrective measure- If the Department of Labor (DOL) hasn’t already found you! The DOL offers the Delinquent Filer Voluntary Compliance Program (DFVCP) for a fee of $2,000 per year and capped at $4,000 per plan. This menas a plan could file for numerous years and only pay the total fee of $4,000. The DFVCP also relieves plan sonsors of potential penalties and interest for those filings.

How do I file and what do I give my employees?

Plan sponsors are required to file their Form 5500 and all applicable schedules electronically. Plan Sponsors will need to obtain their credentials (PIN) and “sign” the Form 5500 with their PIN. There is also a requirement that the Plan Sponsor have a “wet-signature” paper copy of file. Once the Form 5500 and schedules have been submitted and approved by the DOL, the Summary Annual Report (SAR) must be provided to all participants (COBRA as well) within 9 months of the end of the plan year. Plan Sponsors can provide the SAR electronically if they meet ALL of the electronic delivery requirements.

Form 55oo Center of Excellence FAQs

For more information on the Form 5500 filing please contact us 916.631.7887

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