The Form 5500 is an important compliance, research, and disclosure document for plan participants and beneficiaries about the health and wellbeing of the 401k plan, which is then filed with the Department of Labor (DOL).
Acting as a 401k plan’s annual report, it’s also a source of information and data for other Federal agencies, Congress, and the private sector to assess employee benefit, tax, and economic trends and policies.
More specifically, the employer maintaining the plan or the plan administrator of an ERISA 401k plan must file a Form 5500. It reports information on the qualification of the plan, its financial condition, investments, and the operations of the plan.