I sound like a broken record, but I won’t stop until 401(k) plan sponsors understand the issue of a late Form 5500 and Internal Revenue Service (IRS) and Department of Labor (DOL) penalties.
If you are late with filing a Form 55009, that Form 5500 needs to be filed coincident with an application to the Department of Labor’s Delinquent Filer Voluntary Compliance Program that allows you to file the form late and pay a nominal fee. Otherwise, you may get a bill from the IRS and/or DOL that you owe tens of thousands in penalties.
On the 5500 website, you have to log in and file a Form. 5500 will tell you as much when you try to file. Just had a plan sponsor send me a screenshot of that, together with a $40,000 penalty from the IRS.
Did you get a letter or do you have a late 5500? You know where to reach me.
