As a plan sponsor, reviewing your Form 5500 can feel overwhelming—but it doesn’t have to be. This guide explains what’s reported on the form, where the information comes from, and why it matters for your 401(k) plan. Whether you're looking at participant counts, investment income, contributions, or compliance disclosures, we’ve got you covered. Ubiquity prepares your Form 5500 for filing and takes care to ensure that all data aligns with your plan’s activity and regulatory requirements.

Here’s what each key section means:

Part II – Participant Information (Line 5)

This section shows how many participants were involved in the plan during the year.

Source of information:

We use census data you or your payroll provider submit, including:

  • Dates of birth, employment, and terminations
  • Eligibility and participation status
  • Account balances

How to view participant counts:

  • Log in at MyUbiquity.com
  • Go to Reports
  • Select 5500 Participant Report

This shows the individuals included in the annual filing.

Line 5 Codes Explained:

  • 5a: Participants eligible on January 1, including terminated with balances
  • 5b: Participants eligible on December 31, including terminated with balances
  • 5c(1): Participants with balances on January 1
  • 5c(2): Participants with balances on December 31
  • 5d(1): Active, eligible participants with balances as of January 1 (terminated before 1/1 excluded)
  • 5d(2): Active, eligible participants with balances as of December 31 (terminated before 12/31 excluded)
  • 5e: Terminated participants in 2024 who were not fully vested

Accurate counts determine your 5500 filing type and audit requirement. 

Part III – Financial Information (Line 8)

This section shows how money moved through your plan during the year.

8a. Contributions:

  • Employer: Safe Harbor, Profit Sharing, QNECs, Match
  • Employee: Pre-tax and Roth
  • Rollovers: From other retirement plans

Only contributions posted between Jan 1 and Dec 31 are reported (cash basis).

8b. Other Income (investment earnings):

  • Dividends
  • Investment gains/losses
  • Interest earned
  • Participant loan interest

8c. Total Income:
Sum of 8a + 8b

8d. Benefits Paid:
Distributions made for:

  • Terminations
  • In-service (59½)
  • Hardship
  • QDROs
  • RMDs

8e. Deemed/Corrective Distributions:

  • ADP/ACP test refunds
  • Excess deferral corrections

8f. Administrative Fees:

Includes:

  • Monthly participant charges
  • Loan/distribution fees
  • Financial advisor or custodial fees

Part V – Plan Feature Disclosures

These lines highlight key plan features and activities.

Line 10g – Participant Loans:
Marked "Yes" if there were loan balances as of Dec 31.
Also reports the total outstanding loan amount.

Lines 10h and 10i – Blackout Periods:
A “blackout period” temporarily limits participant access (e.g., during plan conversion).

If your plan transitioned to Ubiquity in 2024, we likely marked:

  • 10h: Yes – Blackout occurred
  • 10i: Yes – Required notice provided

This is for regulatory transparency only.

Part VIII – IRS Compliance Questions (Lines 14–15)

These help the IRS understand how your plan meets compliance standards.

14a. Aggregated Plans:
Marked “Yes” if your plan was tested alongside others (e.g., controlled group testing).

14b. ADP/ACP Testing Method:
Reflects how nondiscrimination was tested:

  • Safe Harbor (if applicable)
  • Otherwise, method used: current year or prior year

15. Pre-Approved Plan Document:
All Ubiquity plans use a pre-approved IRS Opinion Letter document.

Ubiquity completes these questions for you based on your plan's setup. Contact us if you'd like a deeper explanation of your testing results.

NAICS Business Code

This code identifies your company’s industry on Form 5500.

How we collect it:
Requested during onboarding. If unavailable, we use default code 541600 (Management Consulting).

Where to find your actual code:

Need Help or See Discrepancies?

If you notice anything that looks incorrect—participant counts, business code, financial data—or need help understanding the details of your Form 5500, please contact us.