 A 5500 Filing is required by every employer with a Section 125 Plan with 100 or more participants which utilizes pre-tax dollars for funding. Government and Church organizations are exempt from this requirement. The filing is due 7 months after the end of the plan year. If this requirement is not met, a Form 5588 allows your organization to extend your filing by up to two and a half months. Benefit Advantage will prepare the Federal 5500 form for your Cafeteria/Section 125 Plan at your request. The charge for the preparation will vary depending on whether your company is a Welfare Benefit Plan or a Cafeteria/Section 125 Plan. To determine your companies filing requirements, please review the following information: - Cafeteria/Section 125 Plans are defined as companies participating in the Section 125 Plan only.
- Welfare plans are defined as any plan, fund or program maintained by an employer or by an employee organization, or by both, to the extent that such plan, fund, or program is for the purpose of providing for it's participants or their beneficiaries:
Medical, surgical, or hospital care or benefits, or benefits in the event of sickness, accident, disability, death, or unemployment, or vacation benefits, apprenticeship or other training programs, or day care centers, scholarship funds, or prepaid legal services.
10 Common Form 5500 Filing Errors - Not signing the forms
- Not filing a final 5500 for a merged plan
- Not attaching the independent accountant's report
- Not including required schedules
- Omission of necessary information
- Asset class and cross-form errors
- Not reporting a change in the sponsor's name or Employer Identification Number
- Mistaking fiduciary liability insurance for a fidelity bond
- Not properly labeling/including attachments
- Not attaching a copy of the form 5500 extension
Failing to file the Federal Form 5500 can be very costly to your organization! In addition to the possible criminal penalties for willful From 5500 failures, the plan administrator is also subject to penalties of up to $1,100 for every day a Form 5500 is missing or incomplete. Call Benefit Advantage to prepare your Form 5500. It's just another service that makes things easier for you! 800-686-6829 You may also complete a request form to have Benefit Advantage prepare your Form 5500. 5500 Filing Request Form |
