Employer Action Items

• Determine whether your organization will need to file Form(s) 5500 for any calendar year plans;
• Collect Schedule A’s, as well as any related information required to accurately file the annual Form 5500(s);
• Reach out to vendors to confirm any deadlines in place for information submission;
• Work with vendors to electronically file Form(s) 5500 (including required schedules and attachments) using the DOL’s EFAST2 electronic filing system (no later than by July 31, 2024);
• If extra time is required, file IRS Form 5558 no later than by July 31, 2024.

Summary

Employers sponsoring certain tax-qualified employee benefit plans and other programs subject to the Employee Retirement Income Security Act of 1974 (“ERISA”) must electronically file with the US Department of Labor (“DOL”), an annual Form 5500. The Form 5500 is designed to advise the IRS and the DOL, as well as plan participants and beneficiaries, of important information related to the underlying plan’s sponsorship, administration and financial performance. All ERISA-qualified health and welfare plans must annually submit a Form 5500, unless an exemption applies to the employer, or the underlying plan or arrangement. Employers bundling benefits under a wrap plan are only required to file a single Form 5500 respective of all benefits offered under such wrap plan.

Note: Small welfare benefit plans (generally fewer than 100 covered participants as of the first day of the plan year) that are also unfunded and/or fully insured (or a combination of unfunded and insured) are exempt from the Form 5500 submission requirement.

Employers maintaining employee benefit plans operated on a calendar year basis must submit their 2023 Form 5500s with the U.S. Department of Labor (“DOL”) by or before July 31, 2024. To the extent a plan sponsor appropriately submits an IRS Form 5558, the applicable Form 5500 deadline may be extended by 2.5 months (as due on or before October 15, 2024).

For More Information

• Information regarding the Form 5500: https://www.dol.gov/agencies/ebsa/employers-and-advisers/plan-administration-and-compliance/reporting-and-filing/form-5500;
• 2023 Form 5500: https://www.dol.gov/agencies/ebsa/employers-and-advisers/plan-administration-and-compliance/reporting-and-filing/form-5500;
• 2023 Instructions for Form 5500: https://www.dol.gov/sites/dolgov/files/ebsa/employers-and-advisers/plan-administration-and-compliance/reporting-and-filing/form-5500/2023-instructions.pdf;
• Information regarding Form 5558: https://www.irs.gov/forms-pubs/about-form-5558;
• Form 5558: https://www.irs.gov/pub/irs-pdf/f5558.pdf.

For questions regarding this Legislative Update or any other related compliance issues, please contact your Burnham Benefits Consultant or Burnham Benefits at 949‐833‐2983 or inquiries@burnhambenefits.com.

This Legislative Update was prepared by the Baldwin Regulatory Compliance Collaborative (the “BRCC”), a partnership of compliance professionals offering client support and compliance solutions for the benefit the partnerships in the Baldwin Risk Partners organization, which includes Burnham Benefits Insurance Services (“Burnham Benefits”).

Burnham Benefits and the BRCC do not engage in the practice of law and this publication should not be construed as the providing of legal advice or a legal opinion of any kind. The consulting advice we provide is intended solely to assist in assessing its compliance with applicable federal and state law requirements, and is based on our interpretation of federal guidance in effect as of the date of this publication. To the best of our knowledge, the information provided herein, and assumptions relied on, are reasonable and accurate as of the date of this publication. Furthermore, to ensure compliance with IRS Circular 230, any tax advice contained in this publication is not intended to be used, and cannot be used, for purposes of (i) avoiding penalties imposed under the United States Internal Revenue Code or (ii) promoting, marketing or recommending to another person any tax-related matter.