The penalties for a missing or late 5500 are over $2,000 per day that the filing is late. However, this can be drastically reduced by utilizing the Delinquent Filer Voluntary Compliance Program (DFVCP) before the Department of Labor comes asking about a late or missing 5500. Employers must file Form 5500 for health and welfare plans by the end of the seventh month following the last day of the plan year, unless the small plan exception applies.
Applies To:
- Plan sponsors with fully insured ERISA plans that have 100 or more participants on the first day of the plan year.
- Plan sponsors with self-funded ERISA plans that have 100 or more participants on the first day of the plan year.
- Plan sponsors with funded plans (i.e., using a trust), regardless of size.
- All multiple employer welfare arrangements (MEWAs) providing group health plan benefits.
Go Deeper:
Calendar year 2024 ERISA plans must file Form 5500 by July 31, 2025, or can request a 2 ½ -month extension by filing Form 5558 before the plan's original filing due date. (Note, new for 2025, the Form 5558 can be electronically filed through EFAST2). Governmental, church, or Indian tribal plans are typically exempt from ERISA and not required to file a Form 5500.
Additionally, the plan administrator must distribute the Summary Annual Report (SAR) within nine months after the close of the plan year when Form 5500 filing is required. If a Form 5500 extension was filed, the employer must send the SAR within two months after the close of the period for which the extension was granted. For example, a calendar year plan has to distribute the SAR for the 2024 plan year by September 30, 2025. If the plan applied for an extension to the Form 5500 filing, the SAR is then due within two months after the filing. (Note that the SAR is only required if the plan includes fully-insured or funded (i.e. trust) component benefits.)
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