Form 5500 basics: what small business owners need to know
Almost every 401(k) must file a Form 5500 each year. It reports the plan’s finances and operations to the Department of Labor and the IRS, and it becomes public. Your provider usually prepares it, but the plan sponsor signs it and is responsible if it is late or wrong. Here is what owners need to know. Have questions about your filing? Request a plan review.
Which form applies to you
| Plan | Form | Notes |
|---|---|---|
| Solo 401(k) (owners and spouses only) | Form 5500-EZ | Required once plan assets exceed $250,000 at year-end, and in the final plan year |
| Most small 401(k) plans | Form 5500-SF | Generally for plans with fewer than 100 participants with account balances at the start of the year, invested in eligible assets |
| Larger plans | Form 5500 with schedules | Generally 100 or more participants with balances; usually requires an independent audit |
| SEP and SIMPLE IRAs | None | No annual Form 5500 filing |
The deadline
Form 5500 is due by the last day of the seventh month after the plan year ends: July 31 for a calendar-year plan. Filing Form 5558 extends the deadline by two and a half months, to October 15. Most 5500s are filed electronically through the Department of Labor’s EFAST2 system.
What it costs to be late
Penalties can be steep. The Department of Labor can assess penalties that run to thousands of dollars per day for a late or missing Form 5500, and the IRS charges $250 per day, up to $150,000, for a late Form 5500-EZ. There are relief programs for late filers who come forward on their own, such as the Department of Labor’s Delinquent Filer Voluntary Compliance Program, which caps penalties at far lower amounts. Filing late on purpose is never a good strategy, but fixing a missed filing quickly usually costs far less than waiting.
What the owner should check before signing
- Participant counts and plan assets match your records.
- Employee contributions were deposited on time. Late deposits must be reported on the form.
- The plan has an ERISA fidelity bond, generally covering at least 10% of plan assets.
- Fees paid from the plan are reported, and match the fee disclosures you received (see how to benchmark your 401(k) fees).
Why it matters beyond compliance
Form 5500 filings are public. Anyone, including prospective employees, competitors and attorneys, can look up your plan’s assets, fees and late deposits. A clean filing is part of a well-run plan and a documented fiduciary process (see your fiduciary duties as a plan sponsor).
Common questions
When is Form 5500 due?
For a calendar-year plan, Form 5500 is due July 31, the last day of the seventh month after the plan year ends. Filing Form 5558 extends the deadline to October 15.
Do SEP IRAs and SIMPLE IRAs file Form 5500?
No. SEP IRAs and SIMPLE IRAs do not file an annual Form 5500. Most 401(k) plans do.
Does a solo 401(k) need to file Form 5500?
A solo 401(k) files Form 5500-EZ once plan assets exceed $250,000 at year-end, and in the plan’s final year. The IRS penalty for filing late is $250 per day, up to $150,000.
Want someone to check your plan’s filings?
We’ll review your plan’s recent filings and deposits with you. The initial plan review is complimentary, and we aim to reply within one business day.
Request a plan reviewGeneral educational information as of September 27, 2026; limits and rules change. Not individualized investment, tax or legal advice. Consult your tax adviser about your situation.