One aspect of the SECURE Act that many commentators failure to note is that it’s mor expensive to file a late Form 5500.
The Internal Revenue Service (IRS) penalty before the SECURE Act was $25 a day, up to a maximum penalty of $15,000 per plan year. The SECURE Act has increased the IRS penalty to$250 a day, up to a maximum penalty of $150,000 per plan year.
To be eligible to reduce these potential penalties through the DOL’s Delinquent Filer Voluntary Compliance Program (DFVCP), you will have to file the application as a plan sponsor. If the plan is under IRS or DOL audit, you are going to find yourself no longer eligible for the DFVCP.