Agencies Release Final Rule for Form 5500 and Form 5500-SF

On February 24, 2023, the DOL, IRS and Pension Benefit Guaranty Corporation (collectively, “agencies”) released a final rule announcing changes to the Form 5500 and Form 5500-SF and related instructions. These changes will go into effect for the 2023 annual reports. The changes to the forms and instructions address the remaining changes originally proposed in September 2021 (see our September 30, 2021, Compliance Corner article). Some changes, mostly related to defined benefit plans, were previously implemented in 2022 (see our June 9, 2022, Compliance Corner article).

Highlights of the final set of changes include, but are not limited to:

• Creation of a new filing option for a defined contribution group (DCG), called a DCG reporting arrangement, and a new Schedule DCG (Individual Plan Information) to report individual plan information. Large plans in a DCG and small plans not meeting audit waiver conditions are subject to separate plan-level audits.
• Creation of a new Schedule MEP (Multiple-Employer Pension Plan Information) to report information specific to MEPs, including participating employer and aggregate account information.
• Changes to how defined contribution plan participants are counted by basing the count on the number of participants with account balances instead of the number of eligible participants.
• Amendments to Schedules H, R and SB to improve financial transparency and reporting.
• Addition of certain Code compliance questions to improve tax oversight and compliance of tax-qualified retirement plans, including plans in a DCG filing.

The notice provides illustrations of the changes to the forms and instructions. Advance copies of the 2023 forms and instructions will be released later this year.

Sponsors of retirement plans should be aware of the upcoming changes to Form 5500.

Federal Register: Annual Information Return/Reports »
Fact Sheet: Changes for the 2023 Form 5500 and Form 5500-SF Annual Return/Reports »