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Form 5500 Plan sponsors who maintain qualified benefit programs such as pension plans, 401(k) plans or health & welfare plans generally must file an annual report with the Employee Benefits Security Administration ( EBSA). This annual report known as a Form 5500 is due within 7 months after the end of the plan year. Delinquent Filer Voluntary Compliance (DFVC) Program The Department of Labor ( DOL) has eased the penalties for late or missing Forms 5500 substantially. Under this program, sponsors will face a penalty of $10 per day up to a maximum of $750 for small plans and $2,000 for larger plans. Given the statutory ability of the DOL to assess up to $1,100 per day in civil penalties, this provides a significant incentive to correct past failures to file. PBGC & Pension Plans Qualified Pension Plans are assessed annual premiums (both fixed & variable rate) by the Pension Benefit Guaranty Corporation ( PBGC) for insurance coverage. The fixed rate premium for 2005 is $19 per participant. The variable rate premium is assessed based on the funded status of the plan. Larger plans (over 500 participants) must file a PBGC Form 1-ES by February 28th for calendar year plans which represents their estimated premiums. All plans must file a PBGC Form 1 which is due by October 15th for calendar year plans. |
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“The Department of Labor (DOL) has eased the penalties for late or missing Forms 5500 substantially” |
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To contact us: |
Form 5500 & Compliance |
