The formulas
- Per filing = $10 x days late, capped at $750 (small plan) or $2,000 (large plan)
- More than one late year for the same plan: capped at $1,500 (small) or $4,000 (large) per plan
- Small plan sponsored by a 501(c)(3) organization: per-plan cap of $750
How it works
The Delinquent Filer Voluntary Compliance Program lets plan administrators who missed Form 5500 filings pay a reduced civil penalty. The basic penalty is $10 a day. For a small plan it is capped at $750 per filing and $1,500 per plan; for a large plan, $2,000 per filing and $4,000 per plan. A small plan sponsored by a section 501(c)(3) organization has a per-plan cap of $750.
Count days from the due date to the filing date. If the administrator obtained an extension but filed after the extended date, the penalty runs from the original due date. The program is open to administrators who have not been notified of a failure to file; a Notice of Intent to Assess a Penalty makes the filing ineligible, as do amended filings, Form 5500-EZ filers and one-participant plans.
Illustrative figures only. Check the result against your firm's methodology before relying on it.
Common questions
Does the per-plan cap apply to one late year?
No. With a single late filing the per-filing cap is the limit; the per-plan cap matters when several years are filed together for the same plan.
What if the extension was missed?
Penalties are calculated from the original due date, not the extended one.
Sources
Runs in your browser. The figures you type are not sent to CORAA or stored. Check the result against your firm's methodology before relying on it.