Form 5500 is essential for maintaining the integrity of retirement plans, ensuring compliance, safeguarding participant interests, and providing necessary data for regulatory oversight. Proper filing is crucial for plan sponsors to avoid penalties and ensure their plans remain viable and compliant with federal standards.
Why do we need to file Form 5500?
- Form 5500 is filed by a designated responsible corporate officer and is needed to satisfy Employee Retirement Income Security Act (ERISA) requirements for compliance with federal regulations.
- This company officer is responsible for submitting complete and accurate information, including financial statements, plan demographics and supplemental addendums and schedules.
- Responsible for timely filing, the key executive is also accountable for ensuring that the retirement plan meets internal policies and all federal regulations.
- In addition to collaborating with legal, financial and accounting professionals, the 5500 signatory is also responsible to stakeholders including board of directors, benefits committees and ultimately their own employees for plan successes … or failings.
The information gathered with Form 5500 submissions allows both the state and the federal agencies to monitor compliance and viability of retirement plans, which in turn, keeps investments more secure, and lessens the risk of non-compliant, improperly managed funds. Penalties imposed by the Department of Labor for non-compliance are steep and add up quickly, with the Late Filing Penalty being as high as $2,400 per day* for failing to file.
Don’t get overwhelmed with collecting and analyzing what’s needed for this important responsibility. Let our team help you compile everything and report on time.
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