5500 deadline

[Guest ars]

What are the potential penalites for late filing of a 5500? The plan has more the 100 employees.

[Guest JF]

Here is a section from the 5500 IRS instruction booklet regarding the penalties:

"...Listed below are various penalties for not

meeting the Form 5500 series filing

requirements. One or more of the following five

penalties may be assessed or imposed in the

event of incomplete filings or filings received

after the due date unless it is determined that

your explanation for failure to file properly is for

reasonable cause:

1. A penalty of up to $1,000 a day for each

day a plan administrator fails or refuses to file

a complete return/report. See ERISA section

502©(2) and 29 CFR 2560.502c-2.

2. A penalty of $25 a day (up to $15,000)

for not filing returns for certain plans of deferred

compensation, certain trusts and annuities, and

bond purchase plans by the due date(s). See

Code section 6652(e). This penalty also applies

to returns required to be filed under Code

section 6039D.

3. A penalty of $1 a day (up to $5,000) for

each participant for whom a registration

statement (Schedule SSA (Form 5500)) is

required but not filed. See Code section

6652(d)(1).

4. A penalty of $1,000 for not filing an

actuarial statement. See Code section 6692.

Other Penalties

1. Any individual who willfully violates any

provision of Part 1 of Title I of ERISA shall be

fined not more than $5,000 or imprisoned not

more than 1 year, or both. See ERISA section

501.

2. A penalty of up to $10,000, 5 years

imprisonment, or both, may be imposed for

making any false statement or representation

of fact, knowing it to be false, or for knowingly

concealing or not disclosing any fact required

by ERISA. See section 1027, Title 18, U.S.

Code, as amended by section 111 of ERISA...."