Which 5500 schedule is designed for indicating the financial health of smaller plans?

Schedule I of Form 5500 is specifically designed for small retirement plans, typically those with fewer than 100 participants. This schedule allows these plans to provide simplified reporting regarding their financial health and operations. It includes information about the plan's assets, liabilities, and income, while also ensuring that smaller plans can meet their compliance obligations without the more extensive reporting that is required for larger plans.

Smaller plans may find Schedule I advantageous as it streamlines the reporting process, ensuring that they can still effectively communicate their financial status without the burden of the more complex requirements applicable to larger plans. This is particularly important for smaller employers, who may not have the same level of administrative resources available as larger organizations.

In contrast, other schedules serve different purposes. For example, Schedule H is utilized for larger plans and provides a more comprehensive view of the plan’s financial statements, while Schedule R is used for determining the minimum required contributions and compliance with nondiscrimination testing. Schedule G focuses on service provider information and the investment-related aspects of the plan. Each of these schedules serves distinct functions and targets different types of plans or reporting needs, emphasizing the specialized role that Schedule I plays for smaller plans.