The plan year is the 12-month period the employer uses to administer its employee benefit plans. It may—but doesn’t have to—align with the calendar year.
Why it matters:
The plan year determines the Form 5500 due date, which is always the last day of the seventh month after the plan year ends (unless extended).
Examples:
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Calendar year plan: Plan year ends December 31 → Form 5500 due July 31
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Off-calendar plan (e.g., July 1–June 30): Form 5500 due the following January 31
The plan year should be clearly stated in the Wrap document or SPD. If the plan year isn’t defined, the default may be the policy renewal date—but that’s not ideal for ERISA compliance. Using a consistent plan year across benefits can simplify filings and avoid confusion.