The Department of Labor (DOL) announced on Thursday its new and final updates to the 2023 Form 5500.
The changes will also implement several updates to annual reporting requirements related to the SECURE Act of 2019. Among these changes include modifications to implement SECURE Act requirements for DC group plans to develop consolidated annual reports, changes to pooled employer plan (PEP) and multiple employer plan (MEP) reporting, and more. These updates mark the third and final phase of a series of implementations following a September 2021 Notice of Proposed Form Revisions.
“The form changes and regulatory amendments, especially those on multiple-employer plan reporting, improve the Form 5500 as a critical oversight, public disclosure and policy data tool,” said Assistant Secretary for Employee Benefits Security Lisa M. Gomez, in a statement.
The Form 5500 are a series of documents designed to satisfy annual reporting requirements under the Employee Retirement Income Security Act of 1974 (ERISA) and the Internal Revenue Code (IRC). All employers who offer a workplace retirement plan and with 100 employees or over are required to complete the Form 5500. Other variations of the form require plans with fewer than 100 employees and one-participant plans to file.
New and updated Form 5500 changes
Beginning in July 2024 for calendar year plans, the changes to Form 5500 are:
- A consolidated Form 5500 reporting option for certain groups of defined contribution retirement plans, improved reporting by pooled employer plans and other multiple employer plans.
- A change in the participant-counting methodology for determining eligibility for simplified reporting alternatives available to “small plans,” which are generally plans with fewer than 100 participants.
- A breakout of reporting on administrative expenses paid by the plan on the plan’s financial statements.
- Further improvements in financial and funding reporting by PBGC-covered defined benefit plans.
- The addition of selected Internal Revenue Code compliance questions to improve tax oversight and compliance of tax-qualified retirement plans.
- Technical and conforming changes as part of the annual rollover of forms and instructions.
Technical modifications were also made to address provisions in SECURE Act 2.0—specifically on code section 403(b) MEPs and PEPs, minimum required distributions and audit requirements for plans in DC group reporting arrangements.
The DOL expects these changes to cut overall filing costs for employee benefit plans by $95 million annually. Mock-ups of the forms and instructions will be available at reginfo.gov, according to the DOL, and release of “for information-only” copies of the forms and instructions will be available later this year.
SEE ALSO:
- Form 5500 Changes Announced by Department of Labor
- Pooled Plan Filing Requirements Added to Form 5500
- SECURE Act-Dictated Changes to Form 5500 Proposed
Amanda Umpierrez is the Managing Editor of 401(k) Specialist magazine. She is a financial services reporter with over six years of experience and a passion for telling stories and reporting news. Amanda received her degree in journalism and government and politics at St. John’s University. She is originally from Queens, New York, but now resides in Denver, Colorado with her partner. In her free time, Amanda enjoys running, cooking, and watching the latest drama show.
