GlacierWealth · Owner's guide

How to read your Form 5500.

You do not need to be a retirement-plan attorney to read your own filing. Most small-business owners only need to check a handful of lines. This walkthrough shows you where they are and what they mean.

1. 1

   Find your plan's most recent filing

   Use the Department of Labor's EFAST2 search. Enter your company or plan name, download the PDF, and note the plan year and filing type at the top of the first page.

2. 2

   Confirm the filing type

   A full Form 5500 includes Schedule C provider compensation detail. A Form 5500-SF omits Schedule C, so indirect fees and revenue sharing are harder to see from the public record alone.

3. 3

   Check the named fiduciary

   Look for the signature block and the plan administrator or fiduciary line. In most small companies, the owner is the named fiduciary under ERISA §402(a).

4. 4

   Look for feature code 2R

   On a full Form 5500, line 8a lists plan characteristic codes. On Form 5500-SF, the same codes appear on line 9a. 2R means a self-directed brokerage window is available.

5. 5

   Review Schedule C on full filings

   Schedule C reports direct and indirect compensation paid to recordkeepers, brokers, advisers, and other providers. Compare the amounts to the 408(b)(2) disclosure you received as plan sponsor.

6. 6

   Trace who pays the fees

   If the company pays from operating cash, the fee is a deductible business expense. If participants pay, the amount is deducted proportionally from participant accounts, which usually reduces the owner's balance the most.

7. 7

   Request a review if anything does not match

   Mismatches between the 408(b)(2) disclosure, the Form 5500, and your invoice are worth a second look. GlacierWealth reviews the filing against your documents and answers within two business days.

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