Changes in Form 5500 Filing Requirements

Note that there are changes in the schedules and instructions for filing the 2020 Form 5500—and a wrinkle in the filing deadline as well. 

Instructions for Form 5500

One-Participant Plans. The instructions have been revised to reflect that, effective for plan years beginning after 2019, a one-participant plan or a foreign plan required to file an annual return can file Form 5500-EZ electronically using the EFAST2 filing system instead of filing Form 5500-EZ on paper with the IRS. Form 5500-SF is no longer used by a one-participant plan or a foreign plan in place of Form 5500-EZ. 

Administrative Penalties. The instructions have been updated to reflect an increase to $2,233 per day in the maximum civil penalty amount assessable under ERISA Section 502(c)(2). The increased penalty is applicable for civil penalties assessed after Jan. 15, 2020, for violations that occurred after Nov. 2, 2015. 

Schedules

Schedule H Part III - Accountant’s Opinion. Schedule H, Line 3b now replaces a “yes”/“no” question with check boxes to indicate whether the ERISA Section 103(a)(3)(C) audit supporting the accountant’s opinion was performed pursuant to 29 CFR 2520.103-8 or 29 CFR 2520.103-12, pursuant to both, or not performed pursuant to either of those sections. The instructions for the questions on the accountant’s opinion have also been revised to reflect revisions to the Accountant’s Opinion, Statement on Auditing Standards (SAS) 136, Forming an Opinion and Reporting on Financial Statements of Employee Benefit Plans Subject to ERISA.

Schedules H and I, Line 4l. The instructions for Line 4l have been revised to increase the required minimum distribution age from 70½ to 72, as amended by the SECURE Act.

Schedules H and I, Line 5c. Line 5c has been revised to clarify that the “yes” box is the appropriate box to check if the plan was covered by the Pension Benefit Guaranty Corporation (PBGC) at any time during the plan year. 

Schedule R. Line 14 of Schedule R has been revised to provide multiemployer plans with a choice of three counting methods by which to count inactive participants and to require that an attachment be provided depending on the counting method chosen. A plan that reports a number on lines 14b or 14c that differs from the corresponding number it reported for the plan year immediately preceding the current plan year also must attach an explanation of the reason for the difference.

Due Date Aug. 2

For defined benefit plans, defined contribution plans and 403(b) annuity arrangements with calendar year plan years, the Form 5500 is due July 31. In most years, that is—but not in 2021.

The form must be filed by the end of the seventh month after the end of a plan year. Plans that use the federal fiscal year—Oct. 1–Sept. 30—have to file by April 30. But since most plans set their plan years to the calendar year, most plans have to file by July 31. However, in 2021, July 31 is a Saturday; when that date falls on a weekend, the form is due on the next business day. In 2021, that is Monday, Aug. 2.