2023 Brings Significant Changes To Form 5500

Aug 9, 2023 | Articles


The Department of Labor (DOL) announced its annual revisions to the IRS Form 5500.


What Is IRS Form 5500? Why Is It Important?

An employer sponsoring a qualified retirement plan, covered by ERISA, must file IRS Form 5500 with the DOL and IRS each year the plan holds assets. This critical document is used to report information on the qualification of the plan, its financial condition, and operations.


Generally, there are three types of filers:

  1. Form 5500-EZ – “owner-only” plan
  2. Form 5500-SF – “small” plan with fewer than 100 participants
  3. Form 5500 – “large” plan with 100 or more participants


What Has Changed In 2023?

  • An option to file a consolidated Form for certain group-defined contribution plans
  • Improved reporting for Pooled Employer Plans (PEPs) and Multiple Employer Plans (MEPs)
  • Changes in methodology for in identifying small plans for reporting purposes
  • A breakout of reporting of administrative expenses paid by the plan on a plan’s financial statements
  • Improvements in reporting by PBGC-covered defined benefit plans
  • The addition of Internal Revenue Code compliance questions to improve tax compliance
  • Technical and conforming modifications as part of the annual rollover of forms and instructions


Determining Your Plan Audit Threshold

The procedure for determining which plans remain under the 100-participant threshold has been modified. Instead of counting all eligible employees, employers can now only count employees who have account balances at the start of the plan year. This revision will likely bring substantial savings to employers that have low participation by eliminating the need for an audit.


Effective Date

This new procedure is effective for plan years beginning on or after January 1, 2023.

 Contact us with any questions. 

Good News:  Effective immediately, we will transmit your IRS Form 5500/8955-SSA filings on your behalf.



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