Form 5500 Filing Deadline Approaching for 401(k) Plan Sponsors

The October 15 deadline to file your Form 5500 is drawing near if you are the plan sponsor of a 401(k) plan. This deadline only applies to calendar year-end plans, essentially plan years that runs from January 1 to December 31. Typically, for calendar year-end plans, the initial deadline for filing your Form 5500 is the end of July; however, your service provider should have filed an extension of time to file, which provides for an extension until October 15, 2025. It’s not unusual for plans requiring a 401(k) audit to use the extension to file after the original due date.

If you’re ready to file, we recommend discussing the filing process with your service provider as soon as possible. The final Form 5500 must be filed on the Department of Labor (DOL) EFAST2 system, and this system has a limited capacity. The closer you get to the October 15 deadline, the more difficult it will be to log in to the system and successfully file. Additionally, since this is a task you likely only perform once a year, it may take some time to reacquaint yourself with the filing procedure, locate your login information, and review the final documents to ensure their accuracy before filing.

Filing after the October 15 Deadline

So, what if you can’t complete the filing on time, what should you do next? You may want to consider using the Department of Labor’s Delinquent Filer Voluntary Compliance Program (DFVCP). This program allows you to admit that you didn’t complete the required compliance activities in time, which made the filing late. The filing process is fairly straightforward and can help you avoid more costly fines and penalties associated with filing late.

It should be noted that this option can only be used if you have not been notified in writing by the DOL that they identified that you haven’t filed or haven’t filed timely. Remember, the title is “Voluntary” so you can’t respond to a DOL penalty assessment with a voluntary filing.

To take advantage of this program, you should electronically file a complete Form 5500 on the EFAST2 System. This means that the Form 5500 must be completed, and the annual audit (if required) must also be completed first. Then you need to go online and file the 5500, audit report and any other needed schedules. Make sure that the DFVC program box online D of Part I of the Form 5500 is checked. This indicates to the DOL that you are filing under the program.

The second part of the program involves paying the penalty. The basic penalty is $10 per day from the original due date of the Form. For example, calendar year plans are originally due for filing by July 31. Most service providers will obtain an extension that provides time to file through October 15. However, if the filing is not completed by October 15, the original due date of July 31 applies. If you actually filed the form on October 20, you would need to calculate the late penalties from August 1– October 20. The maximum penalty for a large plan filer is $2,000. While this is a lot of money, it’s much less than the penalty the DOL will assess if they’re the ones who identify the error. The DOL has an online calculator that you can use to simplify the calculation process.

We recommend you consider this option for filing your Form 5500 if you need more time to file than the regulations allow.

For more information on how we can help, request a free consultation below or contact the team at (314)-886-7913 to discuss your unique 401(k) audit needs.

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