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Things To Remember Before Filling The Form 5500

Form 5500 is an annual report filed with the US Department of Labor (DOL) containing information on the financial, investment, and operating requirements of a Plan 401(k). The purpose of Form 5500 is to provide the Internal Revenue Service (IRS) and DOL with information on how the plan works and compliance with government regulations.

All retirement plans such as profit plans and 401(k) must submit Form 5500 for each year in which the plan contains assets. You can also find more details about the employee benefit plan in Form 5500 Preparation Services by CXC Solutions. 

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The following is a list of the most common filing errors that you should avoid and will help inform 5500 preparation  – 

1.Form 5500 must be signed and dated as appropriate – Ensure that you have the correct signature of the employer and package administrator, as well as the dates on Form 5500.

2. Form 5550 must have the correct EIN and correct plan number (PN) – The employer identification number is very important and used to identify "plan sponsors" for the same year for up to one year when completing line 2b of Form 5500.

3. Submission of Form 5500 cannot take more than 12 months – Ensure that the period specified in Part I Form 5500 is not more than 12 months.  

4. Use the correct feature plan code on line 8 from the Form of 5500 – On Form 5500, line 8, you must select checkbox A to indicate whether the plan provides retirement benefits. You must enter the plan function code in the field under Field A. 

5. Correctly identify the funding and performance agreement on line 9 of Form 5500 – On Form 5500, lines 9a and 9b, include all correct funding and service agreements.