What’s the penalty for not filing Form 5500?

Q: What’s the penalty for not filing Form 5500?

Failing to file Form 5500 on time can trigger up to $2,739 per day from the DOL in 2026 (no cap) plus a separate IRS penalty of $250/day up to $150,000, but the DFVCP sharply reduces these if you correct it before the DOL contacts you.

Short answer: Failing to file Form 5500 on time can trigger steep penalties (up to $2,739 per day from the DOL in 2026, with no cap, plus a separate IRS penalty) though the Delinquent Filer Voluntary Compliance Program (DFVCP) sharply reduces them if you correct the filing before the DOL contacts you.

Failing to file Form 5500 on time can lead to significant penalties, especially if the noncompliance is discovered during a Department of Labor (DOL) audit. There are two separate penalty tracks: DOL and IRS.

DOL penalty (ERISA §502(c)(2)): The DOL can assess a civil penalty of up to $2,739 per day for 2026 for each day a filing is late or missing, running from the original due date, with no maximum. (This figure is normally inflation-adjusted each year; it was $2,670 for 2024 and $2,739 for 2025. For 2026 the DOL made no inflation adjustment — the required October 2025 CPI-U data was never published after the funding lapse — so the 2025 amount of $2,739 per day continues to apply.)

IRS penalty (IRC §6652(e)): The IRS can impose its own penalty of $250 per day, up to a maximum of $150,000 per plan year, for a late or incomplete return.

Voluntary correction (DFVCP): The Delinquent Filer Voluntary Compliance Program lets plan sponsors file late Form 5500s at a sharply reduced, capped rate. For a large health and welfare plan (100 or more participants), the penalty is $10 per day capped at $2,000 per annual report, with a maximum of $4,000 per plan when several delinquent years are filed together. (Small plans have lower caps.) All delinquent filings for a plan must be submitted in one DFVCP transaction for the cap to apply. The IRS and PBGC generally waive their separate penalties for filers who properly complete the DFVCP.

Employers who suspect a past-due filing should act quickly to correct it voluntarily: DFVCP eligibility ends once the DOL issues a notice of failure to file, after which the full daily penalties apply.