Form 5500 late filing penalties: what the Department of Labor can charge.
A missing or late Form 5500 can draw a daily penalty from the Department of Labor, and each plan year counts separately. This page explains the amounts and what lowers the cost. It is general information, not legal or tax advice.
Three things to know first.
Up To $2,739 Per Day
The Department of Labor can assess up to $2,739 for each day a Form 5500 is late or missing. The 2026 amount was left unchanged from 2025. The statute sets no cap on the total.
Every Plan Year Is Separate
A plan with three unfiled years has three separate penalties, each with its own daily clock. Delay across several years is what turns a small problem into a large one.
Retirement Plans Have A Second Penalty
Retirement plan returns can also draw an IRS penalty of $250 per day up to $150,000 per plan year. Health and welfare plans are mainly exposed to the Department of Labor penalty.
Three steps to take next.
Find Out Which Years Are Open
List every plan year with 100 or more participants and confirm each return was filed and accepted. A missing proof of acceptance counts as a missing return.
Check For A Notice
Look for any letter from the Department of Labor about missing filings before you do anything else, since a notice changes which options remain.
File Through The Voluntary Program
If no notice has arrived, file late returns through the Department voluntary program, which replaces the daily penalty with a capped charge.
Three questions to ask first.
Which Years Are Late?
Ask your provider to confirm in writing which plan years have no accepted return.
What Is The Daily Exposure?
Ask for the number of days late for each year so you can compare the program charge with the daily maximum.
Who Pays The Penalty?
Ask who calculates and pays any program charge, and whether it is included in the quoted price.
Where these figures come from.
Mercer: 2026 Civil Penalties Will Not Increase
The $2,739 per day Form 5500 amount, which carries over unchanged from 2025 into 2026.
HUB: 2025 Department of Labor Penalty Increases
The 2025 adjustment to $2,739 per day under ERISA section 502(c)(2), applied to penalties assessed after January 15, 2025.
IRS: 401(k) Plan Fix-It Guide, Form 5500
The IRS late filing rate of $250 per day, capped at $150,000, under Internal Revenue Code section 6652(e).
26 U.S.C. 6058: Information Required From Plans
Shows the IRS return requirement applies to funded deferred compensation plans, not welfare benefit plans.
29 CFR 2560.502c-2: Civil Penalties Process
The notice of intent to assess, the 30 day statement of reasonable cause, and when a notice becomes final.
Department of Labor: Delinquent Filer Program
Program charge of $10 per day, the caps for small and large plans, who is eligible, and how to file and pay.
Form 5500 Late-Filing Penalties: The Detail
Two agencies can penalize a late or missing Form 5500, and they do not coordinate. These are the points that decide how much a late filing costs.
Two Agencies, Two Penalty Tracks
The Department of Labor can assess up to $2,739 per day under ERISA, and the IRS can assess $250 per day up to $150,000 per return for retirement plans. Each track runs on its own clock.
The Due Date Is the Starting Line
A calendar-year plan’s Form 5500 is due July 31. Penalties accrue from the original due date, or the extended due date if a valid extension was in place.
Penalties Are per Return, per Year
Every unfiled plan year is a separate delinquent return. Several missed years can compound quickly, which is why catching up early matters.
Voluntary Programs Cost Far Less
The DOL Delinquent Filer Voluntary Compliance Program caps the penalty at fixed amounts, far below the statutory maximum, when you file before the DOL contacts you.
Common Questions About Form 5500 Late-Filing Penalties
How much is the DOL penalty for a late Form 5500?
The statutory maximum is up to $2,739 per day, adjusted annually for inflation. In practice the amount is often negotiated, and voluntary programs set much lower fixed amounts.
How much is the IRS penalty?
For retirement plan returns, $250 per day up to a maximum of $150,000 per return. The IRS penalty applies to plan returns it requires, not to welfare plans.
When does the penalty start?
The day after the original due date or the extended due date. For a calendar-year plan that means August 1 without an extension.
Do small plans pay less?
The statutory amounts do not change with plan size, but the voluntary program caps are lower for small plans, with fewer than 100 participants.
Can we avoid the penalty by filing late quietly?
Filing late without a program does not remove exposure. The DOL can assess penalties on a delinquent return whether it arrives early or late, so use the voluntary program when you are eligible.
Is there a way to get more time before the deadline?
Yes. Form 5558 gives an automatic extension of two and a half months if filed by the original due date.
Does a reasonable-cause explanation help?
Both agencies can reduce or waive penalties for reasonable cause. You need a written explanation and supporting facts, and the request should be made promptly.
Who is responsible for the penalty, the company or an individual?
The plan administrator is generally responsible, and that is usually the employer. Penalties are typically a company expense, not payable from plan assets.
What should we do if we missed a year?
Gather the plan documents and filing history, confirm which years are missing, and file using the voluntary program if you are eligible. Send us what you have and we will help sort out the sequence.
Send us your renewal.
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