Which retirement plans require you to file a 5500

The requirement to file a Form 5500, Annual Return/Report of Employee Benefit Plan, applies to a broad range of retirement plans, but not all. The filing requirements are determined by the type of plan, the number of participants, and other plan characteristics.

Below is a comprehensive summary of which retirement plans require the filing of a Form 5500, based on the most current IRS and Department of Labor guidance.

Employee benefit plans subject to ERISA

Generally, any administrator or sponsor of an employee benefit plan subject to the Employee Retirement Income Security Act of 1974 (ERISA) must file a Form 5500 each year. This includes both pension benefit plans and welfare benefit plans, unless a specific exemption applies.

Pension benefit plans

• Defined contribution plans: Such as 401(k) plans, profit-sharing plans, stock bonus plans, money purchase plans, and others.
• Defined benefit plans: Traditional pension plans, cash balance plans, etc.
• 403(b) plans: Annuity arrangements under Code section 403(b)(1) and custodial accounts under 403(b)(7) for regulated investment company stock, if subject to ERISA.
• SIMPLE 401(k) plans: If subject to ERISA.
• SEP and SIMPLE IRA plans: Only if not exempt under special rules (see below).
• Multiple-employer plans: Plans maintained by more than one employer (not a multiemployer plan).
• Multiemployer plans: Plans maintained under collective bargaining agreements with contributions from more than one employer.
• Church plans electing coverage under Code section 410(d).
• Plans covering residents of U.S. territories (Puerto Rico, U.S. Virgin Islands, Guam, Wake Island, American Samoa) if not otherwise exempt.

Welfare benefit plans

These include plans providing medical, dental, vision, life insurance, disability, severance, apprenticeship and training, scholarship funds, etc.

Special rules for small plans

Small pension and welfare plans (fewer than 100 participants) may be eligible to file the simplified Form 5500-SF if they meet additional requirements.

• 100% of assets in certain secure investments
• No employer securities
• Not a multiemployer plan
• Not required to file Form M-1
• Not a pooled employer plan
• Not part of a DCG reporting arrangement

Direct Filing Entities (DFEs)

Specific investment arrangements may be required or permitted to file Form 5500 as a DFE, depending on the type of entity and participation by ERISA plans.

• Master trust investment accounts
• Common/collective trusts
• Pooled separate accounts
• 103-12 investment entities
• Defined contribution group reporting arrangements
• Group insurance arrangements

Plans exempt from filing Form 5500

Certain plans are specifically exempt from the Form 5500 filing requirement, including:

• One-participant plans: A plan covering only the owner (and spouse) of a wholly owned business or only partners (and their spouses) in a partnership, provided it is not subject to ERISA. These plans generally file Form 5500-EZ if required.
• If the plan is unfunded, fully insured, or a combination, and covers fewer than 100 participants at the beginning of the plan year, it is generally exempt from filing.
• Governmental plans: Plans established or maintained by a government entity.
• Church plans: Plans maintained by a church for its employees, unless the plan has elected to be covered by ERISA.
• Plans that are maintained only to comply with workers’ compensation, unemployment compensation, or disability insurance laws.
• Foreign plans: Plans maintained outside the U.S. primarily for nonresident aliens (with some exceptions).
• Unfunded excess benefit plans.
• Certain SEPs and SIMPLE IRAs that meet the alternative method of compliance in 29 CFR 2520.104-48 or 2520.104-49.
• Certain 403(b) plans not established or maintained by an employer as described in DOL Regulation 29 CFR 2510.3-2(f).
• Apprenticeship or training plans meeting all conditions of 29 CFR 2520.104-22.
• Unfunded, dues-financed pension or welfare plans meeting alternative compliance methods.

One-participant plans and foreign plans

• One-participant plans must file Form 5500-EZ if plan assets exceed $250,000 at the end of the plan year, or for the final plan year, regardless of assets.
• Foreign plans maintained outside the U.S. for nonresident aliens generally file Form 5500-EZ if required.

Other filing requirements

• Form 8955-SSA: Required for plans with separated participants with deferred vested benefits.
• Form 5330: For excise taxes related to employee benefit plans.
• Form 5310-A: For plan mergers, consolidations, spinoffs, or transfers.

Always consult your tax professional if you have any questions about filing forms for your agricultural business. Check with the IRS and Department of Labor guidance for more information and to download specific forms.