WASHINGTON, D.C. – Senators Jim Banks (R-Ind.) and Cory Booker (D-NJ) introduced the Form 5500 Filing Simplification Act. This bipartisan legislation establishes a single, uniform filing deadline for Form 5500 and reduces unnecessary administrative burdens, while maintaining oversight and transparency for retirement plans.
Under current law, employers often need to file an extension request with the IRS using Form 5558 just to submit their annual Form 5500 on time. The Form 5500 Filing Simplification Act eliminates unnecessary and duplicative filings by aligning the statutory deadline with existing filing requirements. The bill also modernizes the filing process by allowing electronic signatures on required forms and reports.
The legislation is endorsed by the American Retirement Association, the ERISA Industry Committee, the U.S. Chamber of Commerce, the CHRO Association, and the American Benefits Council.
Senator Jim Banks (R-Ind.) said, “Employers shouldn’t have to jump through unnecessary bureaucratic hoops just to comply with federal employee plan reporting requirements. This bipartisan bill cuts red tape, simplifies the filing process, and lets businesses spend more time serving their employees.”
Senator Cory Booker (D-NJ) added, “Our commonsense bill simplifies and modernizes the reporting process for employer-sponsored retirement plans, reducing paperwork and eliminating outdated or unnecessary administrative hurdles. By cutting red tape, these changes would reduce the compliance burdens on small and mid-size businesses offering retirement plans to their hardworking employees.”
Key Provision of the Form 5500 Filing Simplification Act:
- Establishes a single, uniform statutory filing deadline for Form 5500 annual reports.
- Eliminates the need for most plan sponsors to file a separate IRS Form 5558 extension request.
- Permits Form 5500 filings and related reports to be signed electronically.
- Directs the Department of the Treasury, Department of Labor, and Pension Benefit Guaranty Corporation to modernize filing requirements and conform regulations accordingly.
- Maintains existing oversight and transparency requirements for employee benefit plans.
Background:
Form 5500 is the annual reporting form used by employee benefit plans to satisfy reporting and disclosure requirements under the Employee Retirement Income Security Act (ERISA). Under current law, the statutory filing deadline often does not leave employers enough time to complete the information needed to file their reports, forcing many to plan sponsors to submit a separate extension request to the IRS before filing Form 5500.
The Form 5500 Filing Simplification Act streamlines this process by creating a single deadline that eliminates unnecessary paperwork while preserving federal oversight of retirement plans. This legislation also modernizes the filing system by allowing required reports to be signed electronically and directs federal agencies to update their regulations accordingly.
