5500 reporting

Form 5500

If you think compliance is expensive, try NON Compliance.

IRS $25 per day up to $15,000 and DOL $2,194/day with no max

What is 5500 Reporting?

According to the IRS and the Department of Labor, ” The Form 5500 Series form is substantial compliance, research, and disclosure tool for the Department of Labor. “Also, it’s an important disclosure document for plan participants and beneficiaries. Finally, it serves as a great source of information and data for use by other Federal agencies, Congress, and the private sector. Also, it allows the department’s vital information in assessing employee benefit, tax, and economic trends and policies.

For most plans, Form 5500 must be filed once per year, before July 31 (if July 31 is not a business day, the next business day). However, if the ERISA plan is not a calendar year plan, Form 5500 must be filed no later than the last day of the calendar month following the seventh calendar month following the end of the plan year. Extensions can be requested by submission of a Form 5558. If the Form 5558 is correctly submitted before the deadline, an automatic 2.5-month extension will be granted.

Furthermore, The Form 5500 Series is part of ERISA’s overall reporting and disclosure framework, which ensures that employee benefit plans are operated and managed by specific prescribed standards. Therefore, ensuring that participants, beneficiaries, as well as regulators, are provided or have access to sufficient information. 

To ensure that your rights and benefits protected and include those participants in the plan. Also, beneficiaries included in the policy. Since January 1, 2010, all forms in the 5500 series must file electronically using the U.S. Department of Labor’s EFAST system. 

We can help you with your filing and make it simple for you. 

What is included with 5500 Reporting?

*We will help you assemble all the needed information for 5500 reporting.
*Help you complete form 5500 and all Schedules.
*Submit the form electronically through the EFAST System on your behalf.
*We Provide Optional SAR completion.
*Our Coaches ensure you are in full compliance with all 5500 reporting requirements.

IRS and DOL Penalties and Fees

DOL PENALTIES

ERISA Penalty Statute

Description of ERISA Violations Subject to Penalty

2020 Penalty Amount

ERISA §209(b)

Failure to furnish reports (e.g., pension benefit statements) to certain former participants and beneficiaries or maintain records.

$31 per affected participant and beneficiary

ERISA §502(c)(2)

Failure or refusal to properly file annual report (Form 5500) required by ERISA §104; and

Failure of a multiemployer plan to certify endangered or critical status under ERISA §305(b)(3)(C) treated as a failure to file annual report.

Up to $2,233 per day

ERISA §502(c)(4)

Failure to notify participants under ERISA §10(j) of certain benefit restrictions and/or limitations arising under Internal Revenue Code §436;

Failure to furnish certain multiemployer plan financial and actuarial reports upon request under ERISA §101(k);

Failure to furnish estimate of withdrawal liability upon request under ERISA §101(l); and

Failure to furnish automatic contribution arrangement notice under ERISA §514(e)(3).

Up to $1,767 per day per affected participant

ERISA §502(c)(5)

Failure of a multiple employer welfare arrangement to file report required by regulations issued under ERISA §101(g).

Up to $1,625 per day

ERISA §502(c)(6)

Failure to furnish information requested by the Secretary of Labor under ERISA §104(a)(6).

Up to $159 per day, not to exceed $1,594 per request

ERISA §502(c)(7)

Failure of a defined contribution plan to furnish a blackout notice under ERISA §101(i) or a notice of the right to divest employer securities under ERISA §101(m).

Up to $141 per day per affected participant

ERISA §502(c)(8)

Failure by a plan sponsor of a multiemployer plan in endangered status to adopt a funding improvement plan or a multiemployer plan in critical status to adopt a rehabilitation plan. Penalty also applies to a plan sponsor of an endangered status plan (other than a seriously endangered plan) that fails to meet its benchmark by the end of the funding improvement period.

Up to $1,402 per day

ERISA §502(c)(9)(A)

Failure by an employer to inform employees of Children’s Health Insurance Program (CHIP) coverage opportunities under ERISA §701(f)(3)(B)(i)(l).

Up to $119 per day per affected employee

ERISA §502(c)(9)(B)

Failure by a plan administrator to timely provide to any State the information required to be disclosed regarding coverage coordination under ERISA §701(f)(3)(B)(ii).

Up to $119 per day per affected participant and beneficiary

ERISA §502(c)(10)(B)(i)

Failure by any plan sponsor of a group health plan, or any health insurance issuer offering health insurance coverage in connection with the plan, to meet the requirements of ERISA §§702(a)(1)(F), (b)(3), (c) or (d); or §701; or §702(b)(1) with respect to genetic information.

$119 per day during non-compliance period

ERISA §502(c)(10)(C)(i)

Minimum penalty for de minimis failures to meet genetic information requirements not corrected prior to notice from the Secretary of Labor.

$2,970 minimum

ERISA §502(c)(10)(C)(ii)

Minimum penalty for failures to meet genetic information requirements which are not corrected prior to notice from the Secretary of Labor and are more than de minimis.

$17,824 minimum

ERISA §502(c)(10)(D)(iii)(ll)

Cap on penalty for unintentional failures to meet genetic information requirements.

$594,129 maximum

ERISA §502(c)(12)

Failure of Cooperative and Small Employer Charity Act (CSEC) plan sponsor to establish or update a funding restoration plan.

Up to $109 per day

ERISA §502(m)

Defined benefit distribution prohibited by ERISA §206(e) due to an impermissible forfeiture following withdrawal of a participant’s contributions.

Amount distributed but not more than $17,213 per distribution

ERISA §715

Failure by a group health plan to provide Summary of Benefits Coverage under Public Health Services Act §2715(f), as incorporated into ERISA §715 and 29 CFR 2590.715-2715(e).

Up to $1,176 per failure

INTERNAL REVENUE CODE PENALTIES

Code Penalty Section

Description of Code Violations Subject to Penalty

2020 Penalty Amount

Code §6652(e)

Failure to timely file annual report (Form 5500) under Code §6058.

$250 per day, up to $150,000

Code §6652(e)

Failure to timely file a notice of plan merger, spin-off or asset transfer (Form 5310-A) under Code §6058.

$250 per day, up to $150,000

Code §6652(d)(1)

Failure to timely file the registration statement for deferred vested benefits (Form 8955-SSA) under Code § 6057(a).

$10 per participant per day, up to $50,000

Code §6652(d)(2)

Failure to timely file notification of certain changes (Form 5500) in a plan’s information (name, plan administrator, plan termination, plan merger or spin-off) under Code § 6057(b).

$10 per day, up to $10,000

Code §6652(h)

Failure to timely provide a required withholding notice (Form W-4P) under Code § 3405(e)(10)(B).

$100 per failure, up to $50,000 per year

Free Download - 5500 Form E-filing Instructions


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