Form 5500 Welfare Plan Reporting

As the July 31 deadline approaches, HR professionals should take a moment to review their company’s obligations under Form 5500 filing requirements for welfare benefit plans. This annual filing is an important part of ERISA compliance for many employers, and missing the deadline can result in steep penalties.

What Is Form 5500?

Form 5500 is an annual information return required by the U.S. Department of Labor (DOL), IRS, and Pension Benefit Guaranty Corporation (PBGC). It is used to report the financial condition, investments, and operations of employee benefit plans.

While commonly associated with retirement plans, Form 5500 is also required for certain welfare benefit plans, which include:

• Group health plans
• Dental and vision plans
• Life insurance plans
• Accidental death and dismemberment plans
• Disability benefits
• Health FSA and HRA plans (in some cases)

Who Must File?

Generally, employers must file Form 5500 for any welfare plan that:

• Is subject to ERISA, and
• Covers 100 or more participants at the beginning of the plan year

Smaller plans (under 100 participants) may be exempt if they are fully insured, unfunded, or a combination of both and meet certain criteria.

Note: Governmental and church plans are typically exempt from Form 5500 filing requirements.

When Is the Due Date?

The Form 5500 is due on the last day of the seventh month after the end of the plan year. For calendar year plans, the due date is Wednesday, July 31, 2025**.**

Employers may request a 2.5-month extension (to October 15, 2025) by filing Form 5558 with the IRS before the original due date.

Penalties for Late or Missing Filings

Failure to file on time can result in significant penalties:

• Up to $2,739 per day (DOL penalty)
• IRS penalties of $25 per day, up to $15,000 per return

Fortunately, employers may be eligible to use the DOL’s Delinquent Filer Voluntary Compliance Program (DFVCP) to significantly reduce late penalties.

Best Practices for HR Professionals

• Verify which plans require filing (e.g., self-funded health plans, HRAs, certain FSAs)
• Work with third-party administrators (TPAs) to collect necessary plan data
• Ensure the plan sponsor and plan administrator are correctly identified
• File electronically via the DOL’s EFAST2 system
• Request an extension early if you’re unsure you’ll meet the July 31 deadline

Staying ahead of compliance deadlines helps protect your organization from costly penalties and ensures your benefits program runs smoothly.