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Form 5500

Form 5500 is an annual return/report required by the Department of Labor (DOL) and the IRS for employee benefit plans, including 401(k) plans. If your ROBS plan holds any assets — which it will, since the 401(k) owns C-Corp stock — you must file.

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Which Form?

Plan SizeFormNotes
Fewer than 100 participantsForm 5500-SF (Short Form)Most ROBS plans use this
100+ participantsForm 5500 (Long Form)Requires independent audit
Solo plan with assets under $250KForm 5500-EZOnly if you’re the sole participant with no employees
Most ROBS plans file the 5500-SF since they typically have a small number of participants (often just the founder).

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Filing Deadline

  • 7 months after the plan year-end
  • For calendar-year plans (most common): July 31
  • Automatic 2.5-month extension available by filing Form 5558 (extends to October 15)

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What’s Required

The filing includes:
ItemDescription
Plan informationPlan name, EIN, plan number, plan year
Financial dataBeginning and end-of-year asset values
Participant countActive participants at beginning and end of year
Plan asset breakdownCategories of investments (employer securities, cash, etc.)
Service provider infoFees paid to plan service providers
Plan characteristicsType of plan, features, compliance indicators

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Plan Valuation

Your ROBS plan holds C-Corporation stock, which must be valued annually. For ROBS plans:
  • Year 1: Stock value typically equals the initial investment (par value × shares)
  • Year 2+: A fair market valuation is needed. Methods include asset-based approaches, income approaches, or for more established businesses, a 409A valuation by an independent appraiser

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Penalties for Late or Missed Filing

SituationPenalty
Late filing (DOL)250/day∗∗,upto∗∗250/day**, up to **150,000 per plan year
Late filing (IRS)250/day∗∗,upto∗∗250/day**, up to **150,000
Failure to fileBoth DOL and IRS penalties, potential plan disqualification
The DOL Delinquent Filer Voluntary Compliance Program (DFVCP) allows reduced penalties for late filings if you self-correct before enforcement action. If you’ve missed a filing, act promptly.

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How Talcott Forge Helps

  • Deadline tracking — your dashboard shows upcoming filing deadlines
  • Data collection — we help gather the financial data needed for the filing
  • Filing support — preparation and submission assistance included in quarterly admin fees

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Electronic Filing

Form 5500 must be filed electronically through the DOL’s EFAST2 system. Paper filings are not accepted.

Learn About Compliance

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