Adulting is hard. Chores, bills, family obligations, and for retirement plan sponsors, remembering to file the Form 5500 on time, every year? Yep – it’s required, and on top of everything else, it can feel like a lot. But before you spiral into an anxiety loop, take a breath—we’ve got you.
We get it—compliance isn’t fun. That’s why we offer one-time consulting services to help retirement plans navigate tricky situations, including late or missing Form 5500 filings. Whether it’s a one-off project or the start of a beautiful partnership, we’re here to make the process easier, clearer, and a lot less stressful. Now, let’s dig into Form 5500 mishaps and how we can help.
What Is Form 5500 and Why Does it Matter?
If a company sponsors a retirement plan that falls under ERISA (think: most 401(k)s), they must file a Form 5500 every year. It’s basically the annual “report card” for the plan, and the government takes it seriously—like “parents realizing summer’s almost over and school supplies are sold out” seriously.
Here are the important details, simplified:
- Due date: Annually, seven months after the plan year ends.
- Need more time? File Form 5558 to get an extra 2.5 months.
- Owner-only plans? They’re off the hook until their plan hits $250K in assets.
And yes—plan sponsors still have to file even if their plan has zero drama and all the money’s gone after a termination. Final filings matter!
“Wait… Did We Forget to File?!”
Here’s how it usually goes down: plan sponsors get a lovely (read: terrifying) letter from the IRS or DOL letting them know their Form 5500 is late or missing. Suddenly that email inbox feels like a horror movie.
Common slip-ups include:
- The company moved TPAs and no one knew who was filing.
- A plan merger occurred, and it got overlooked or delayed with all the moving parts.
- A plan terminated, but the final 5500 ghosted.
- An owner-only plan hit $250K and nobody noticed or realized a 5500 was needed.
- A required audit took longer than expected or wasn’t started in time.
- Honestly, life happened and it got missed.
Whatever the reason—we don’t judge. EGPS is here to clean it up faster than you can stress-clean your house before last-minute company arrives. We also assist with requesting a waiver of any penalties that may have been assessed (obviously, because no one likes penalties).
How Do We Fix It?
Let’s talk cleanup options. The good news? There are official programs to help plan sponsors get back on track without maxing out the company credit card.
For owner-only plans (Form F5500-EZ)
- Not under ERISA = no DOL involvement.
- Use the IRS Penalty Relief Program.
- Fix all missed filings for $500/year, maxing out at $1,500.
Whew. That’s cheaper than one VIP concert ticket.
For ERISA plans (with employees)
- Use the DOL’s Delinquent Filer Voluntary Compliance Program (DFVCP).
- Small plan? $750/year, max $1,500.
- Large plan? $2,000/year, max $4,000.
- 501(c)(3)? Even less.
Way better than the DOL’s regular penalty of $2,670 PER DAY. Yeah, that’s not a typo.
Got a Scary Penalty Notice?
While terrifying, it’s best if plan sponsors don’t ignore it like it’s a robocall about their car’s extended warranty. Waiting makes the potential penalties worse—and plan sponsors could lose the chance to use the simpler fix-it programs mentioned above.
Pro tip: The faster plan sponsors act, the better their chances of reducing or waiving penalties altogether. We’ve helped lots of clients get their plans back in compliance while reducing or even eliminating penalties.
Bottom Line
If plan sponsors are missing a Form 5500 filing, the IRS and DOL may come knocking—but EGPS is the fixer. We speak fluent government-form-jargon so plan sponsors don’t have to. We’ll help untangle the mess and make retirement plans squeaky clean.
This is just one of many one-time compliance consulting projects EGPS does. Reach out to us and we can help, whether it’s a missing Form 5500 or another seemingly-scary retirement plan compliance issue. It’s what we do. No judgment, just solutions.
