Form 5500 is an annual government filing required for most 401(k) plans. Gusto Retirement handles this filing on your behalf at no extra cost. This article explains what Form 5500 is, which version applies to your plan, key deadlines, and what to expect from the filing process.
The Form 5500 Series is part of the reporting and disclosure requirements under the Employee Retirement Income Security Act (ERISA). The purpose of the form is to make sure retirement plans meet set standards and government regulations.
All employers who sponsor a retirement plan governed by ERISA, like 401(k) and profit-sharing plans, generally need to file Form 5500 each year with the Department of Labor (DOL). The Internal Revenue Service (IRS) and the Pension Benefit Guaranty Corporation (PBGC) also get the information.
Gusto Retirement files Form 5500 on behalf of your plan at no additional cost.
Form 5500 reports the following information for retirement plans:
General plan information and service providers
Number of participants
Financial data, like assets, liabilities, income, expenses, and transfers
Types of benefits provided under the plan
Operational activities
Plan funding
There are several versions of Form 5500. The one your plan files generally depends on the number of participants.
The standard Form 5500 needs to be filed for your plan if it meets either of the following:
Has more than 100 participants with a balance at the beginning of the plan year, and you either filed a Form 5500 in the previous filing year or this is the first filing for the plan
Filed the Form 5500-SF last year, but now has over 120 eligible participants with a balance at the beginning of the plan year
The standard Form 5500 is for larger plans and requires a plan audit.
Form 5500-SF can be filed if your plan meets either of the following:
Has fewer than 100 participants with a balance at the beginning of the plan year
Filed the Form 5500-SF last year and has between 80 – 120 eligible participants with a balance at the beginning of the plan year
Note: There are other requirements to file a Form 5500-SF that all Gusto Retirement plans meet. For example, no Gusto Retirement plans are invested in employer securities.
Form 5500-EZ is filed if it is a one-participant 401(k) plan. A one-participant plan covers only:
An owner who owns the entire business and their spouse
One or more partners in a business partnership and their spouses
If any other individuals are covered by the plan — including parents, children, or siblings — the plan is not a one-participant plan.
Compared to the standard Form 5500, Forms 5500-SF and 5500-EZ include summarized financial information sections with no additional schedules to attach.
Form 5500 is due on the last day of the seventh month after the end of the plan year. For calendar year plans, this is Jul. 31.
Plans required to file a standard Form 5500 (100 or more participants) also typically need to complete a plan audit. Gusto Retirement generally files an automatic extension until Oct. 15 to allow enough time for audit completion.
An audit is usually not required for plans with fewer than 100 eligible employees.
Gusto Retirement prepares and electronically files Form 5500 for all assets in your 401(k) plan at no added cost. We determine the appropriate form and complete the filing process on your behalf.
We will file Form 5500 by the appropriate deadlines as long as you provide any required information in a timely manner. In most cases, we will have adequate information about your plan to prepare and file Form 5500 with little to no action on your part. However, you are responsible for providing any information we request — including the name of your chosen auditor if you are a large plan filer.
Important: If you started with Gusto Retirement this year, we will not prepare or file your previous year's Form 5500. If you transferred your plan to Gusto Retirement earlier this year and need to file for the prior plan year, work with your previous administrator to file. Likewise, if you transferred your plan from Gusto Retirement to another provider before the end of the filing year, work with your new provider to file.
If your plan transferred to Gusto Retirement from another provider and we have not received all the information from the prior provider during the conversion process, we will request additional information through a task on your dashboard. This may include the "Trust Report" from your prior provider or completion of the pre-Gusto activity task in your administrator dashboard.
All assets should transfer to Gusto Retirement from your prior plan provider as soon as possible, but no later than Dec. 31 of the year you begin your plan with us. If assets are not received before Dec. 31, your prior plan provider may need to handle your Form 5500 filing for the year.
We will also need to get the conversion assets and a year-to-date trust report to make sure we have the necessary financial information for the entire plan year. Without this, we will be unable to file a complete and accurate Form 5500.
If you fail to convert your assets by Jun. 1 of the year following the year the conversion took place, we will file as if you have a new plan, and your plan's trustee will get a letter regarding nondiscrimination testing.
If you transferred your plan to Gusto Retirement, you need to maintain accurate and complete plan records to provide to us for Form 5500 preparation.
If Gusto Retirement is not the plan administrator — which applies to self-service plans — you need to review and sign Form 5500 before it can be submitted.
If you are a large plan filer — generally, 100 or more participants with a balance on the first day of the plan year — you need to hire a third-party auditor to conduct the plan audit. Gusto Retirement cannot arrange for the plan audit on your behalf.
While we will work with your chosen auditor to provide all information we are able to, it is your sole responsibility to contract and pay the auditor.
You can learn how to choose a plan auditor and review the DOL's guide to selecting an auditor for your employee benefit plan.
Copies of recent and prior year Form 5500 filings are available in your Resource Library in the 401(k) administrator dashboard.
All Form 5500 filings are also searchable on the DOL's Form 5500/5500-SF filing search.
For more information, see the Form 5500 FAQ or visit the IRS website on Form 5500.