Final Changes to 2023 Forms 5500 Issued

February 23, 2023

Together with the U.S. Labor Department and the Pension Benefit Guaranty Corporation, the U.S. Treasury Department and the IRS recently released notices of final forms and instructions revisions regarding annual reporting of employee benefit plans.

The Federal Register notices, Document #2023-02653 for the Notice of Final Forms Revision and Document #2023-02652 for the Notice of Final Rulemaking, address the Form 5500 Series for plan years beginning on or after Jan. 1, 2023. These forms report information regarding a 401(k) plan’s financial condition, qualifications, operation and compliance and must generally be filed the last day of the seventh month after the plan year ends. This update is the third and final set of amendments to the forms proposed in 2021 to comply with the Setting Every Community Up for Retirement Enhancement Act of 2019 (SECURE Act).

The 2023 plan year reports, to be filed starting in mid-2024, include the following modifications:

  • A consolidated Form 5500 reporting option for certain groups of defined contribution retirement plans, enhanced reporting by PEPs and other multiple-employer plans
  • An adjustment to the participant-counting methodology to determine eligibility for simplified reporting alternatives for small plans (generally plans with fewer than 100 participants)
  • A breakout of reporting regarding administrative expenses paid by the plan on its financial statements
  • Additional enhancements in financial and funding reporting by PBGC-covered defined benefit plans
  • Selected Internal Revenue Code compliance questions
  • Annual rollover-related technical and conforming modifications

Additionally, technical changes were made addressing certain provisions in SECURE Act 2.0 of 2022 regarding Code section 403(b) multiple employer plans, including PEPs, minimum required distributions and audit requirements for plans in defined contribution group reporting arrangements.