Peter Gulia Posted Tuesday at 01:34 AM Report Share Posted Tuesday at 01:34 AM ERISA § 502(c)(2)’s civil penalty for a failure to file an annual report is $2,586 per day. 88 Fed. Reg. 2210, 2219 (Jan. 13, 2023). If a plan’s administrator is off by one year and three weeks, that’s about $1 million. Peter Gulia PC Fiduciary Guidance Counsel Philadelphia, Pennsylvania 215-732-1552 Peter@FiduciaryGuidanceCounsel.com Link to comment Share on other sites More sharing options...
fmsinc Posted Tuesday at 09:32 PM Report Share Posted Tuesday at 09:32 PM Are you talking about the Form 5500? Link to comment Share on other sites More sharing options...
Peter Gulia Posted Tuesday at 09:48 PM Author Report Share Posted Tuesday at 09:48 PM Yes. Form 5500 and its Schedules and attachments is the form for an ERISA-governed employee-benefit plan's annual report. Peter Gulia PC Fiduciary Guidance Counsel Philadelphia, Pennsylvania 215-732-1552 Peter@FiduciaryGuidanceCounsel.com Link to comment Share on other sites More sharing options...
ESOP Guy Posted Tuesday at 10:14 PM Report Share Posted Tuesday at 10:14 PM Yeah that is why the DOL program that caps the fine is so important. It used to be you could try to ask for some kind of forgiveness but at this point the down side is too much. Likewise the filing a form without the auditor's report but a note is getting riskier also. That fine for an information return with no tax implications is just plain silly SSRRS, Lou S. and Bill Presson 3 Link to comment Share on other sites More sharing options...
baneja Posted Wednesday at 01:48 PM Report Share Posted Wednesday at 01:48 PM Does the punishment fit the crime? Were SOA, ASPPA and any other professional organizations involved in the development of these regulations? Link to comment Share on other sites More sharing options...
BG5150 Posted Wednesday at 03:43 PM Report Share Posted Wednesday at 03:43 PM On 1/23/2023 at 8:34 PM, Peter Gulia said: ERISA § 502(c)(2)’s civil penalty for a failure to file an annual report is $2,586 per day Note the penalty is UP TO $2,586/day. I would think the administrator would have to be extremely recalcitrant in not filing to extract that sort of penalty. Has anyone seen the max penalty applied by either the IRS or DOL? QKA, QPA, CPC, ERPATwo wrongs don't make a right, but three rights make a left. Link to comment Share on other sites More sharing options...
Peter Gulia Posted Wednesday at 05:42 PM Author Report Share Posted Wednesday at 05:42 PM It’s Congress that set this penalty. The Labor department merely announces the non-discretionary inflation adjustment. acm_acm 1 Peter Gulia PC Fiduciary Guidance Counsel Philadelphia, Pennsylvania 215-732-1552 Peter@FiduciaryGuidanceCounsel.com Link to comment Share on other sites More sharing options...
SSRRS Posted 12 hours ago Report Share Posted 12 hours ago Is there a reason that this unreasonable penalty is not being contested by any of the organizations? Link to comment Share on other sites More sharing options...
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