I believe that one of the great breakthroughs over the past few years has been the mandatory e-filing by the Department of Labor (DOL) of Form 5500. While people don’t like the idea that they have to log in, use their DOL credentials, and file it, it’s a lot better than hoping the DOL gets it in the mail.
The problem with technology and programs to correct any missed 5500 filings, the DOL is only so forgiving to a point. So in addition to unveiling the Form 5500 for this soon to be ending calendar plan year, the DOL has increased their maximum penalties for missed 5500 filings. The new maximum penalty for a plan administrator who fails to file a complete or accurate Form 5500 has been increased from $1,000 to $2,063 a day, which is applicable for late filings that occurred after November 2, 2015. While these penalties are maximum penalties, they should go a long way in convincing plan sponsors to timely file their 5500.