Which plans must file the 5500 schedule R?

• A. Only large plans
• B. Both large and small plans under specific conditions
• C. Only small plans
• D. All plans regardless of size

Answer: (B)

The requirement for filing the Form 5500 Schedule R pertains to retirement plans that qualify for certain types of reporting under the Employee Retirement Income Security Act (ERISA). This form is specifically needed for both large and small plans, but certain conditions have to be met for small plans.

Large plans, defined as those with 100 or more participants at the beginning of the plan year, are mandated to file the Form 5500 and Schedule R without exception. Small plans, which have fewer than 100 participants, generally file the Form 5500-SF (Short Form) but may need to incorporate Schedule R under specific circumstances, particularly if they utilize the special rules for multi-employer plans or if they have certain types of investments that affect retirement planning.

Therefore, stating that both large and small plans must file the Schedule R under specific conditions accurately reflects the regulatory framework of ERISA and ensures compliance for different plan sizes. This highlights the nuances in retirement plan reporting requirements, demonstrating that while size plays a role, the specific circumstances surrounding each plan's structure and type ultimately dictate the filing needs.