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Plan Termination & Late 5500


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In the middle of terminating an ERISA 403b plan when it came to light the client did not file the 5500 for 2013. The client submitted the late 5500 through DFVCP and paid the $750. Now the client has decided to petition the DOL to have the fine waived claiming they "attempted" to file the 5500 on time, but the TPA's 5500 filing website did not process their original filing attempt.

Question: would the client still be OK to proceed with termination while contesting the late filing penalty or do they need to leave the plan open until this is resolved?


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From the DFVCP FAQ's on the DOL website:

Q13: Does a plan administrator waive any rights upon filing under the DFVCP?

Yes. Payment of the penalty amount under the terms of the DFVCP constitutes, with regard to the filings submitted under the Program, a waiver of the right both to receive notice of the penalty assessment from the Department and to contest the Department’s assessment of the DFVCP penalty amount.

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