What Is a Summary Annual Report (SAR)?

Research. Education. Perspective.

A Summary Annual Report, or SAR, is a narrative summary of financial information reported in an employee benefit plan's annual Form 5500 filing.^[1]

For many participants in private-sector 401(k), profit-sharing and other ERISA-covered retirement plans, the SAR is an annual disclosure that arrives automatically.

It is designed to provide a shorter, participant-facing view of the plan's annual financial report.

That means the SAR can tell you things about:

• plan assets
• income
• employer and employee contributions
• expenses
• benefits or distributions paid
• insurance arrangements where applicable
• your right to obtain more detailed annual-report information

But the SAR should not be confused with:

• your personal 401(k) statement
• the Summary Plan Description
• the full Form 5500
• an Annual Funding Notice for a defined benefit pension plan

The most useful way to think about it is:

> The Form 5500 is the annual plan-level filing; the SAR is the shorter narrative sent to participants summarizing key financial information from that filing.

Key Takeaways

• The Summary Annual Report is a narrative summary of the plan's Form 5500 annual financial report.^[1][4]
• Many ERISA retirement plans furnish the SAR automatically to participants and beneficiaries receiving benefits.^[1]
• The ordinary deadline is generally within nine months after the end of the plan year.^[1][2]
• If the plan has an approved extension for filing Form 5500, the SAR generally can be furnished within two months after the extended Form 5500 due date.^[1]
• For a calendar-year plan without an extension, the ordinary SAR deadline is generally September 30.
• A SAR summarizes plan-level financial information; it does not report an individual participant's personal investment return.
• The plan's beginning and ending assets can change because of investment gains or losses, contributions, benefit payments, rollovers, transfers, fees and participant activity.
• The SAR does not replace the complete Form 5500. Participants can request the full annual report and many filings can be searched publicly through the Department of Labor's Form 5500 system.^[2][3][6]
• The SAR is not the same as the SPD. The SPD explains how the plan operates; the SAR summarizes annual financial information.
• Defined benefit pension plans subject to the Annual Funding Notice requirement generally do not also have to provide the ordinary SAR.^[1][2][4]
• A surprising SAR number can be a useful reason to examine the full Form 5500, but it is not by itself proof of poor performance, excessive fees, fiduciary breach or noncompliance.

SAR in One Sentence

> ROIStreet Definition > > A Summary Annual Report is the participant-facing narrative summary of financial information contained in an ERISA plan's annual Form 5500 report.

The phrase summary annual report can sound like an investment-performance document.

It is not.

It summarizes the plan's annual financial reporting.

Why Participants Receive an SAR

ERISA includes both reporting requirements to the government and disclosure requirements to participants and beneficiaries.

Form 5500 primarily satisfies the annual federal reporting side.

The SAR takes important financial information from that annual report and communicates it to participants in a shorter format.^[1][4]

This creates two layers:

Government and public layer

Form 5500

Participant-summary layer

Summary Annual Report

The information overlaps, but the documents serve different purposes.

Who Generally Receives the SAR?

Department of Labor guidance identifies participants and beneficiaries receiving benefits as the ordinary recipients of the SAR for plans subject to the requirement.^[1]

The disclosure is generally automatic.

A participant should not have to know that the SAR exists and make a special request each year merely to receive the required annual summary.

When Is the SAR Due?

For an ordinary plan subject to the SAR requirement, the Department of Labor states that it generally must be furnished:

within 9 months after the end of the plan year.^[1][2]

This is later than the ordinary Form 5500 filing deadline because the SAR summarizes information from that annual filing.

Calendar-Year Example

Assume a 401(k) plan has a calendar plan year:

January 1 through December 31

The plan year ends:

December 31, 2025

Nine months later is:

September 30, 2026

So, absent an applicable filing extension, the ordinary SAR deadline is generally September 30, 2026 for that 2025 plan year.

What If Form 5500 Was Extended?

When the annual-report filing due date has been properly extended, DOL guidance provides an alternate SAR deadline:

within 2 months after the Form 5500 due date with the approved extension.^[1]

A participant should therefore not assume that every SAR arriving after September 30 is automatically late.

Extended-Deadline Example

Assume:

• calendar plan year ends December 31, 2025
• ordinary Form 5500 deadline is July 31, 2026
• an approved extension moves the filing due date into October 2026

The SAR deadline can then move to two months after that extended Form 5500 due date under the applicable rule.^[1]

What Financial Information Can an SAR Summarize?

A retirement-plan SAR can summarize financial information reported through the plan's annual Form 5500 package.

Depending on the plan and filing structure, the narrative can address categories such as:

• plan assets
• plan liabilities
• income
• employer contributions
• employee contributions
• investment earnings
• other income
• benefit payments or distributions
• administrative expenses
• other plan expenses
• insurance arrangements
• information about the annual report and participant rights

The key idea is that the figures are aggregated at the plan level.

Plan Assets

For a defined contribution plan such as a 401(k), plan assets can include the combined retirement assets attributable to many participants.

That amount is not:

• your personal account balance
• the employer's corporate cash
• the amount available for one participant to withdraw
• a guaranteed benefit amount

It is a plan-level financial figure.

Beginning Assets vs. Ending Assets

A common way to read annual plan information is to compare beginning and ending assets.

That can be useful, but it does not directly measure investment return.

Suppose plan assets increase from:

$500 million

to:

$550 million

The simple increase is 10%.

That does not mean participants earned a 10% investment return because the asset change can include:

• employee contributions
• employer contributions
• rollovers into the plan
• investment gains
• investment losses
• distributions
• rollovers out
• administrative expenses
• transfers to or from another plan

Worked Example: Assets Rise While Investments Earn Less

Assume:

• beginning plan assets: $100 million
• participant and employer contributions: $14 million
• benefits and distributions paid: $8 million
• net plan expenses: $1 million
• investment gain: $5 million

Simplified ending assets:

$100M + $14M - $8M - $1M + $5M = $110M

Ending assets increased by 10%.

But the simplified investment gain was only $5 million on the plan's invested base.

The 10% asset increase should not be called the plan's investment return.

Plan Income

Annual-report information can include plan income.

Depending on the plan, that can reflect categories such as:

• contributions
• interest
• dividends
• realized or unrealized investment changes
• other income

The SAR is not necessarily designed to provide complete investment-attribution analysis.

If a number raises a question, the full Form 5500 schedules and attachments can provide more detail.

Employer and Employee Contributions

For a 401(k), contribution totals can help show the scale of annual savings flowing into the plan.

The annual total can reflect:

• participant elective deferrals
• employer matching contributions
• employer nonelective contributions
• other applicable plan contribution sources

A rising contribution number can result from more participants, higher wages, higher contribution rates, stronger employer contributions or corporate growth.

It does not automatically mean each participant personally saved more.

Benefits and Distributions Paid

A SAR can summarize benefits or distributions paid during the plan year.

For a 401(k), money can leave the plan because of:

• retirement
• job separation
• rollover
• death
• hardship distribution
• in-service distribution
• required distribution
• plan termination or transfer
• other permitted events

A large increase in benefits paid is not automatically negative.

It can reflect ordinary demographic or workforce activity.

Example: Benefits Paid Jump After Layoffs

Assume benefits and distributions paid rise from $18 million to $42 million.

Possible causes can include:

• a workforce reduction
• plant closure
• acquisition
• participant rollovers after job separation
• retirement wave
• plan consolidation

The number can be a useful signal.

It is not a diagnosis.

Administrative Expenses

The SAR can summarize plan expenses.

Depending on the plan's reporting, those expenses can involve items such as:

• recordkeeping
• administration
• accounting
• audit
• legal services
• consulting
• investment-related services
• trustee or custodial services
• other plan costs

Plan-level expense figures do not tell every participant exactly what was charged to that person's account.

Why Expense Changes Need Context

Assume annual administrative expenses rise from $400,000 to $650,000.

That may warrant a closer look.

Possible explanations include:

• participant count increased
• recordkeeper changed
• plan merger occurred
• one-time audit or legal work
• service model expanded
• employer shifted expenses from corporate payment to plan payment
• reporting classification changed

The full filing and participant fee disclosures can provide better context.

SAR Expenses vs. Your Personal 401(k) Fees

These are related but not identical.

SAR

Summarizes plan-level financial information.

Participant fee disclosure

Explains plan and investment-related fees applicable to participants under the relevant disclosure rules.

Individual benefit statement

Can show certain fees and expenses actually charged to the participant's account.

A participant trying to answer "What fees did I personally pay?" should not rely solely on the SAR.

Does the SAR Show Investment Performance?

Not in the same way a fund fact sheet or personal account statement does.

The SAR is primarily a financial summary of the plan.

A participant should not use ending assets divided by beginning assets as the plan's investment return.

In participant-directed plans, two workers in the same 401(k) can have very different returns because they selected different investments.

Example: Same Plan, Different Participant Returns

A plan offers:

• target-date funds
• U.S. stock index fund
• bond fund
• stable-value option

Participant A holds mostly stocks.

Participant B holds mostly stable value and bonds.

Participant C uses a target-date fund.

All three are in the same Form 5500 and SAR.

Their personal returns can differ substantially.

SAR vs. Form 5500

The relationship is straightforward.

Form 5500

The complete annual federal return/report package. It can include the main form, schedules, financial information, service-provider information, auditor report, actuarial information and attachments.

Summary Annual Report

A shorter narrative summary of relevant annual financial information from that report.^[1]

So:

SAR = summary

Form 5500 = underlying annual report

INV-069 explains Form 5500 in detail.

If the SAR Raises a Question, Read the Full Form 5500

Suppose the SAR shows:

• much higher expenses
• much lower ending assets
• unusually large distributions
• substantial liabilities
• another unexpected financial change

The next step is not to assume misconduct.

The next step is to review the full annual report and compare:

• prior-year filing
• current filing
• schedules
• attachments
• audit report where applicable

The SAR is a starting point.

How Can You Get the Full Form 5500?

Department of Labor guidance explains that participants can request the latest annual report from the plan administrator.^[1][2][3]

Many Form 5500 filings also can be found through DOL's public filing system.^[6]

That gives participants two practical routes:

Plan administrator

Request the annual report.

Department of Labor filing search

Search the public Form 5500 filing.

SAR vs. Summary Plan Description

These documents answer different questions.

Summary Plan Description — SPD

How does the plan work?

Examples include eligibility, employer match, vesting, loans, distributions, claims and beneficiary procedures.

Summary Annual Report — SAR

What annual financial information did the plan report?

Examples include plan assets, income, contributions, expenses and benefits paid.

INV-068 explains the SPD.

SAR vs. Summary of Material Modifications

A Summary of Material Modifications, or SMM, tells participants about material changes to information required in the SPD.

Examples can include a changed eligibility rule, contribution formula, loan feature or benefit provision.

The SAR instead summarizes annual financial reporting.

SAR vs. Individual Benefit Statement

For a participant in a 401(k), this distinction is especially important.

Individual benefit statement

Can show:

• personal account balance
• vested balance
• investment holdings
• participant-level activity
• certain fees
• lifetime-income illustrations where applicable

SAR

Shows plan-level financial summary information.

The SAR does not tell the participant:

"Your account earned 7.4%."

Five Common Retirement Documents

Knowing which document answers which question prevents a lot of confusion.

Do Defined Benefit Pension Plans Receive an SAR?

Not always.

Department of Labor guidance states that the SAR is not required for defined benefit pension plans that fall under the applicable Annual Funding Notice framework and provide that notice instead.^[1][2][4]

A pension participant should not automatically assume:

"I never got an SAR, so the plan failed to disclose annual information."

The plan may be providing an Annual Funding Notice instead.

What Is an Annual Funding Notice?

An Annual Funding Notice, or AFN, provides defined benefit pension participants with funding-related information.

DOL's current model notice includes information such as:

• funding measures
• plan assets
• plan liabilities
• participant demographic information
• funding policy
• asset allocation
• material events affecting assets or liabilities
• PBGC-related information where applicable
• right to request the Form 5500.^[7]

Its purpose is different from the ordinary SAR used by many defined contribution plans.

SAR vs. Annual Funding Notice

The plan type determines which disclosure framework applies.

Does the SAR Mean the Government Approved the Plan?

No.

The SAR summarizes information reported by the plan.

The existence of an annual filing and SAR does not mean:

• DOL approved every transaction
• IRS certified every operation for that year
• PBGC endorsed the plan's management
• every participant account is correct

The SAR is a disclosure document, not a government performance rating.

What If the SAR Contains an Error?

If a participant sees something that appears inconsistent, reasonable steps include:

1. confirm the plan year
2. compare the SAR with the Form 5500
3. compare the current year with prior years
4. check whether the plan filed an amended Form 5500
5. ask the plan administrator for clarification

If the issue affects the participant's own benefits, also review the individual benefit statement, SPD, claims procedure and relevant plan records.

What If You Never Receive an SAR?

If the plan is subject to the SAR requirement and the participant believes the deadline has passed:

1. confirm the plan year
2. check whether Form 5500 received an extension
3. determine whether the plan is a defined benefit plan using the Annual Funding Notice instead
4. contact the plan administrator
5. request the current SAR and annual report if needed

Department of Labor's EBSA provides participant assistance for ERISA disclosure questions.^[2][3]

Can the SAR Be Delivered Electronically?

Yes, retirement disclosures can be delivered electronically when the plan satisfies the applicable Department of Labor rules.^[1][2]

Depending on the electronic-disclosure safe harbor being used, participant protections can include:

• notice of internet availability
• access to the document
• right to request paper
• right to opt out of electronic delivery
• confidentiality safeguards

A participant should therefore check the benefits portal, registered email and plan notices before concluding the SAR was never furnished.

A Practical SAR Review Framework

Use five steps.

1. Identify

Confirm the plan name, employer and plan year.

2. Compare

Look at beginning assets, ending assets, contributions, income, benefits paid and expenses.

3. Separate

Distinguish plan-level totals from personal account information.

4. Contextualize

Ask what could explain the change.

5. Escalate intelligently

If a number is important or unexplained, review the full Form 5500, schedules, prior filings, participant disclosures and the plan administrator's explanation.

Worked Example: Plan Assets Fall 12%

Assume the SAR shows:

• beginning assets: $250 million
• ending assets: $220 million

The decline is $30 million, or 12%.

That does not establish a 12% investment loss.

Suppose during the year the plan also had:

• $20 million contributions
• $45 million benefits and rollovers paid
• $2 million expenses
• $3 million net investment loss

Simplified ending assets:

$250M + $20M - $45M - $2M - $3M = $220M

The asset decline is mostly cash outflow, not investment loss.

Worked Example: Expenses Rise 40%

Assume:

• prior-year administrative expenses: $500,000
• current-year expenses: $700,000

Questions worth asking:

• Did participant count increase?
• Did the plan switch recordkeepers?
• Was there a one-time audit, legal or consulting expense?
• Did the employer stop paying an expense directly?
• Did the reporting classification change?

The increase deserves context.

The percentage by itself does not establish excessive fees.

Worked Example: Contributions Rise

Assume:

• Year 1 contributions: $18 million
• Year 2 contributions: $24 million

Potential explanations include:

• more employees
• higher wages
• increased participant deferral rates
• richer employer match
• annual true-up contribution
• acquisition of another workforce

The trend can be positive from a savings-flow perspective.

It still does not tell what any one worker contributed.

Multi-Year SAR Review

One SAR is a snapshot.

Three to five years can reveal trends.

The table suggests growth in assets, contributions, benefits paid and expenses.

But the next question is:

why?

Trend analysis is the beginning of research, not the end.

What the SAR Can Tell You

The SAR can help a participant identify:

• overall plan scale
• annual financial direction
• contribution flows
• benefit outflows
• expense changes
• whether further review is worthwhile

What the SAR Cannot Tell You by Itself

It generally cannot establish:

• your personal account return
• whether your personal balance is correct
• whether your investment allocation is appropriate
• whether fees are competitive
• whether fiduciaries breached their duties
• whether every plan transaction complied with ERISA
• whether the plan is "good" or "bad"
• whether a change in assets was caused by investment performance

Those questions need additional evidence.

Common SAR Mistakes

Treating it as a personal annual statement

The SAR is plan-level.

Calling asset growth the investment return

Cash flows can materially change assets.

Calling higher plan expenses higher personal fees

The relationship is not necessarily one-for-one.

Ignoring the plan year

The SAR can arrive months after the period it summarizes.

Forgetting the Form 5500 extension

An extension can move the SAR deadline.

Confusing SAR with SPD

One is a financial summary; one describes plan rules.

Expecting both SAR and Annual Funding Notice

Covered defined benefit plans can use the funding-notice framework instead.

Stopping at the SAR

The full Form 5500 is available when deeper review is needed.

Treating an unusual number as proof of wrongdoing

Financial changes require context.

Frequently Asked Questions

What is a Summary Annual Report?

A Summary Annual Report is a narrative summary of financial information reported on an employee benefit plan's Form 5500 annual report.^[1][4]

Is a Summary Annual Report the same as Form 5500?

No. The SAR is the shorter participant-facing summary. Form 5500 is the underlying annual federal filing.

Do 401(k) participants receive an SAR?

Many participants in ERISA-covered 401(k) and other defined contribution plans receive an SAR automatically each year under the applicable disclosure rules.^[1][4]

When is the SAR due?

Generally within nine months after the end of the plan year.^[1][2]

When is the SAR due for a calendar-year plan?

Without an applicable Form 5500 extension, the ordinary deadline is generally September 30 of the following year.

What happens if Form 5500 has an extension?

The SAR generally can be furnished within two months after the extended Form 5500 due date.^[1]

Does the SAR show my personal 401(k) balance?

No. It reports summarized plan-level financial information. Your individual benefit statement is the more relevant document for your personal balance.

Does the SAR show my personal investment return?

No. Plan-level asset and income information should not be treated as an individual participant's investment performance.

What information can an SAR include?

It can summarize categories such as plan assets, income, contributions, expenses and benefits or distributions paid, along with information about obtaining additional annual-report information.

Can I request the full Form 5500?

Yes. DOL guidance identifies the latest annual report as information participants can request, and many filings are also publicly searchable.^[1][2][3][6]

Is the SAR the same as the Summary Plan Description?

No. The SPD explains how the plan operates; the SAR summarizes annual financial reporting.

What is the difference between SAR and SMM?

The SAR summarizes annual financial information. The Summary of Material Modifications explains material changes to plan provisions or information required in the SPD.

Why did my pension give me an Annual Funding Notice instead of an SAR?

Defined benefit pension plans subject to the Annual Funding Notice requirement generally do not also have to provide the ordinary SAR.^[1][2][4]

Does a normal-looking SAR mean the plan is compliant?

No. The SAR is a disclosure document, not a government certification or comprehensive compliance audit.

What should I do if a number looks wrong?

Verify the plan year, compare the SAR with the full Form 5500 and prior years, and ask the plan administrator for an explanation if the issue remains unclear.

The Bottom Line

The Summary Annual Report is a compact annual window into a retirement plan's finances.

It can help show:

• what the plan reported
• how large the plan is
• how money flowed into and out of the plan
• how plan-level financial figures changed

But the SAR does not answer:

"How did my own 401(k) perform?"

It answers a broader question:

"What annual financial information did my retirement plan report?"

The best reading sequence is:

SAR → question → Form 5500 → participant records → plan administrator

Use the SAR to identify what deserves attention.

Use the full annual report when you need detail.

Use your individual benefit statement for your own account.

Use the SPD for plan rules.

And for a defined benefit pension, recognize that the Annual Funding Notice can be the more relevant annual financial disclosure.

That document hierarchy turns the SAR from unfamiliar compliance mail into a useful retirement-plan research tool.

Sources & References

1. U.S. Department of Labor: Reporting and Disclosure Guide for Employee Benefit Plans
2. U.S. Department of Labor: What You Should Know About Your Retirement Plan
3. U.S. Department of Labor: Plan Information
4. U.S. Department of Labor: Meeting Your Fiduciary Responsibilities
5. U.S. Department of Labor: Retirement Plans — Reporting and Disclosure Resources
6. U.S. Department of Labor: Form 5500 Series
7. U.S. Department of Labor: Single-Employer Pension Plan Model Annual Funding Notice

Educational Disclaimer

ROIStreet publishes educational content intended to help readers understand retirement-plan reporting and disclosure. Nothing in this article is personalized legal, tax, accounting, investment or financial advice, or a determination that a particular employee benefit plan is compliant, noncompliant, well managed or poorly managed. Actual disclosure obligations depend on plan type, ERISA status, plan year, filing extensions, applicable annual-report requirements and individual facts.

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