June 2025
Caitlin Hillenbrand, Associate Director, Benefits Compliance
Many organizations that are subject to the Employee Retirement Income Security Act of 1974 (“ERISA”) are required to submit annual written reports (generally, IRS series 5500 Forms) respecting each benefits package they offer employees unless an exemption applies. Organizations sponsoring calendar year plans should submit their 2024 Form 5500 to the U.S. Department of Labor (“DOL”) by July 31, 2025. With respect to the July 31 submission deadline, keep in mind an extension is also available, which operates to extend the required submission date to October 15, 2025, so long as the employer files IRS Form 5558 no later than July 31, 2025.
Employer Action Items
- Determine whether your organization will need to file a Form 5500 for any calendar year plan(s);
- Collect Schedule As, as well as any related information required to accurately file the annual Form 5500(s);
- Reach out to vendors to confirm any deadlines in place for information submission;
- Work with vendors to electronically file Form(s) 5500 (including required schedules and attachments) using the DOL’s ESFAST2 electronic filing system (no later than by July 31, 2025);
- If extra time is required, file IRS Form 5558 no later than July 31, 2025.
Summary
Employers sponsoring certain tax-qualified employee benefit plans and other programs subject to ERISA are required to electronically file annual Forms 5500 with the DOL. The Form 5500 is designed to advise the IRS and the DOL, as well as plan participants and beneficiaries, of important information related to the underlying plan’s sponsorship, administration, and financial performance. ERISA-qualified health and welfare plans must annually submit a Form 5500, unless an applicable filing exemption is available to the employer, or the underlying plan or arrangement. Employers electing to bundle their ERISA-qualified benefits may bundle such benenfits via adoption of a ”wrap plan,” consistent with which the employer is required to file only a single, consolidated Form 5500 respective of all benefits offered under the wrap plan.
Importantly, small welfare benefit plans (generally fewer than 100 covered participants as of the first day of the plan year) that are also unfunded and/or fully insured (or a combination of unfunded and insured) are exempt from the Form 5500 submission requirement.
Employers maintaining employee benefit plans operated on a calendar year basis must submit their 2024 Forms 5500 with the DOL on or before July 31, 2025. To the extent a plan sponsor appropriately submits an IRS Form 5558, the applicable Form 5500 deadline may be extended by 2.5 months (as due on or before October 15, 2025).
2025 Penalties
Companies may accrue noncompliance penalties, as assessed by the DOL, for their failure to comply with the Form 5500 submission requirements (such as failing to submit a timely Form 5500 or the submission of an incomplete or inaccurate Form 5500). Pursuant to ERISA, the DOL may charge penalties up to $2,739 per day, for each day the company fails to file and/or correct a completed Form 5500 in 2025. Importantly, note that these penalties may be waived to the extent reasonable cause exists for not complying. To avoid severe penalties, plan administrators may take advantage of the Delinquent Filer Voluntary Compliance Program (“DFVCP”). This program offers plan sponsors an opportunity for the assessment of reduced penalties in exchange for voluntary compliance by the plan sponsor, including submission of late Forms 5500 and/or amendment of previously-submitted erroneous Form 5500 filings. Eligibility for the DFVCP only applies if the required filings are made before receiving a written notification from DOL regarding the missed annual reports.
Additional Information & Resources
- Form 5558 and Instructions
- DOL Information regarding the Form 5500
- 2024 Form 5500
- 2024 Instructions for Form 5500
For more information
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