Filing your Form 5500 on time is critical to staying in compliance with IRS and Department of Labor (DOL) regulations. Missing the deadline can lead to substantial daily penalties—but the good news is, there are options to reduce or avoid those penalties if you act quickly.

Below, we’ve outlined the penalties, how they’re calculated, and what you can do if your filing is late.

What Are the Penalties for Filing Late?

IRS Penalty

  • $250 per day for each day the Form 5500 is late
  • Maximum IRS penalty: $150,000 per plan year

DOL Penalty

  • Up to $2,670 for each day the Form 5500 is late
  • No maximum limit — the penalty continues to grow until the form is filed

Penalties begin accruing from the original due date (July 31), not from the extended deadline (October 15).

Can I File Late and Avoid Penalties?

If you file through the Delinquent Filer Voluntary Compliance (DFVC) Program, you can drastically reduce what penalties you owe.

What Is the DFVC Program?

The DFVC Program is a DOL initiative that allows late filers to voluntarily correct missed filings before they are contacted by a government agency. If eligible, your penalties may be capped:

Small plans:

  • $750 per return
  • $1,500 maximum per plan (if filing multiple years)

Large plans:

  • $2,000 per return
  • $4,000 maximum per plan

This program is only available if your plan is subject to Title I of ERISA and not already under audit by the DOL or IRS.

How Do I File for an Extension?

If you’re enrolled in a Ubiquity full-service plan and your Form 5500 isn’t signed by July 26, we’ll automatically file IRS Form 5558 on your behalf. This gives you an automatic extension:

  • Extended deadline: From July 31 to October 15
  • Gives you more time to review and sign your Form 5500
  • The standard fee for the Form 5558 filing is $195, but this fee will be waived if the extension is requested prior to July 25, 2025. 

However, if the form is not filed by October 15, it is officially considered late, and penalties may apply.

How Can Ubiquity Help With Late 5500 Filings?

If your filing is late or you believe it was missed entirely:

  • Do not file on your own just yet.
  • Contact Ubiquity first.
  • We’ll help determine your eligibility for the DFVC Program and prepare the necessary documentation.

Note: A $195 fee will apply for preparation of late filings and DFVC materials.

Key Takeaways

  • File on time to avoid hefty daily penalties from both the IRS and DOL.
  • Ubiquity automatically files extensions for full-service clients when needed.
  • If you’ve missed the deadline, act quickly to take advantage of the DFVC Program.
  • We’re here to help — Contact us before filing late to explore your best options.