Form 5500: Annual Reporting
ERISA requires most employee benefit plans to file an annual report on Form 5500. For health plans, the Form 5500 reports basic plan information, financial data, and service provider information. The form is filed electronically through the DOL's EFAST2 system.
| Plan Size | Form 5500 Requirement | Audit Requirement |
|---|---|---|
| 100+ participants | Form 5500 required | Audited financial statements required if plan holds assets |
| <100 participants | Form 5500 may be required (check small plan exemption) | No audit required |
| Unfunded or fully insured plans | Form 5500 required if 100+ participants | No audit required (no plan assets) |
Required Participant Notices
- Summary Plan Description (SPD): Within 90 days of becoming covered; updated every 5 years
- Summary of Benefits and Coverage (SBC): At enrollment, during open enrollment, and upon request
- COBRA election notice: Within 14 days of qualifying event
- HIPAA special enrollment notice: In the SPD
- Medicare Part D creditable coverage notice: Annually by October 15
- CHIP notice: Annually before the start of the plan year
- Marketplace notice: Within 14 days of hire
- Women's Health and Cancer Rights Act notice: Annually and at enrollment
Form 5500 Penalties
Watch Out
The penalty for failure to file Form 5500 is $250/day, up to $150,000 per plan year. The DOL's Delinquent Filer Voluntary Compliance Program (DFVCP) allows late filers to pay reduced penalties — typically $10/day up to $2,000 per plan year. If you have missed Form 5500 filings, use the DFVCP to come into compliance before the DOL discovers the failure.