Which plan(s) are required to file the 5500 schedule G?

The requirement to file the Schedule G of Form 5500 is specifically tied to large plans that encounter certain scenarios involving loans. When a plan is classified as a large plan, it typically has 100 or more participants at the beginning of the plan year. For these large plans, Schedule G must be included when there are defaulted loans or leases, or if there are any prohibited transactions that occurred during the plan year.

This requirement serves to ensure transparency and compliance, as defaulted loans or prohibited transactions may indicate significant issues that need to be disclosed. The inclusion of this information in Schedule G helps regulators monitor the financial health and operational integrity of large plans, ensuring that they adhere to fiduciary and regulatory standards.

Smaller plans, which do not have the complexities associated with being classified as large, are not subject to the same stringent reporting requirements and therefore do not need to file Schedule G unless they specifically encounter loans as described.