As a Third-Party Administrator (TPA) dedicated to supporting financial advisors and their clients, we understand the critical importance of accurate Form 5500 filings. The annual Form 5500 is more than just a regulatory requirement—it’s a cornerstone of retirement plan compliance. Errors can expose plan sponsors to audits, penalties, and reputational damage. Fortunately, with the right guidance and processes, most mistakes are entirely avoidable.
Here are the top Form 5500 errors we see—and how you, as a financial advisor, can help your clients steer clear of them.
Common Error:
Entering the wrong plan name, plan number, or Employer Identification Number (EIN) is surprisingly common and can delay processing or trigger red flags.
How to Avoid:
Common Error:
Form 5500 must be electronically signed via the DOL’s EFAST2 system. Missing or invalid signatures will result in immediate rejection.
How to Avoid:
Common Error:
Missing the July 31st deadline (for calendar-year plans) is a frequent and costly mistake.
How to Avoid:
Common Error:
Forgetting to attach required schedules (like Schedule A for insurance contracts or Schedule C for service providers) or providing incomplete information.
How to Avoid:
Common Error:
Misreporting the number of eligible or active participants can change the plan’s filing status (small vs. large plan) and audit requirements.
How to Avoid:
Form 5500 compliance doesn’t have to be stressful. By understanding common pitfalls and implementing these best practices, you can help your clients avoid costly errors and maintain a healthy, compliant retirement plan.
Have questions or need expert support?
Reach out to My Benefits today for all your Form 5500 needs. Our experienced team is here to guide you and your clients every step of the way. Don’t leave compliance to chance—let’s master it together!
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