The Department of Labor can fine up to $2,739 a day for a late Form 5500.
ERISA Section 502(c)(2) lets the Department of Labor assess a civil penalty of up to $2,739 a day for failing to file a complete annual report. There is no cap on the total.
How the DOL penalty works.
Daily Rate
The maximum is $2,739 a day for the 2026 penalty year. The DOL made no inflation adjustment for 2026.
No Overall Cap
Unlike the IRS penalty, the DOL penalty has no maximum total, so a filing that stays open for a year can run past $900,000 at the top rate.
At the DOL’s Discretion
The DOL decides the amount, which can be lower than the maximum depending on the facts.
What lowers the number.
File Voluntarily
The Delinquent Filer Voluntary Compliance Program replaces the DOL penalty with a small fixed daily charge when you file before getting a notice.
Reasonable Cause
An employer can explain why the filing was late and ask the DOL to reduce the penalty.
Act Before a Notice
Once the DOL sends a delinquency notice, the voluntary program is no longer available.
Keep Records
Documents showing the cause and the date of correction support a lower penalty.
Quick answers.
Short answers. This is general information, not legal or tax advice.
Is $2,739 the amount for every plan?
It is the maximum a day. The DOL decides the actual amount.
Does it apply to every year late?
Each late filing can be penalized separately.
How do we avoid it?
File through the DFVCP before a notice arrives. We can help you with the filing.
Where the rules and figures come from.
Each figure on this page comes from the source below. Amounts are indexed or updated over time, so confirm current figures before relying on them.
29 U.S.C. 1132
ERISA Section 502(c)(2): civil penalty for failure to file the annual report.
DOL Notice, 91 FR 31358
The Department of Labor made no civil penalty adjustment in 2026.
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