What’s new for the 2023 IRS Form 5500?
Every year, the DOL updates IRS Form 5500 based on new legislation and regulations─and the changes to the 2023 form are significant. While the filing deadline is months away (July 31, 2024, for calendar year plans), now’s the time for plan sponsors to figure out what the changes mean for their retirement plans.
Five key revisions to IRS Form 5500
Several changes to the 2023 Form 5500 are due to the SECURE Act of 2019 and SECURE 2.0 Act of 2022. We’ve highlighted five key revisions that may be of interest to 401(k) plan sponsors. For a complete breakdown, check out the DOL fact sheet and the final rule in the Federal Register.
1 New counting methodology for determining the 100-participant threshold for small plan reporting options
Description |
Purpose |
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Increase the number of plans that may qualify as a small plan to help simplify administration and reduce expenses, including the waiver of the independent qualified public accountant plan audit for plans with less than 100 participants. |
2 Expanded Schedule H financial information
Description |
Purpose |
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Improve fee and expense transparency of assets paid out of the plan. |
3 New IRS compliance questions
Description |
Purpose |
Three questions will be added to Schedule R (retirement plan information) and Schedule defined contribution group (DCG),¹ focusing on plan testing, safe harbor rules, and the adoption of a preapproved plan document. |
Improve tax oversight and compliance of tax-qualified retirement plans. |
4 Improved reporting by pooled employer and multiple-employer plans
Description |
Purpose |
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Simplify reporting requirements for MEP filers by replacing the former attachment with this new Schedule MEP. |
5 Consolidated reporting option for DCG plans
Description |
Purpose |
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Simplify reporting requirements by permitting the filing of a single aggregated Form 5500, but added a new Schedule DCG to be completed by each plan in the DCG. |
Connect with your third-party administrator or service provider
You may have to gather additional plan and participant data to comply with the new IRS Form 5500 requirements and update your procedures. Now’s a good time to contact the person who helps you with your Form 5500 filing to discuss the changes and the information you’ll need to provide. That way, you’ll be ready when the July filing deadline rolls around.
Important disclosures
The content of this document is for general information only and is believed to be accurate and reliable as of the posting date, but may be subject to change. It is not intended to provide investment, tax, plan design, or legal advice (unless otherwise indicated). Please consult your own independent advisor as to any investment, tax, or legal statements made.
Intended for plan sponsors.
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