DOL Tips on Filing Form 5500

DOL pointers can help prevent penalties

The SECURE Act substantially increases the penalties for the failure to file a Form 5500 and/or Form 8955-SSA for forms required to be filed after December 31, 2019.

The Department of Labor (DOL) has compiled practical tips for some of the most frequently occurring Form 5500 and Form 5500-SF filing problems.

These tips are designed to help filers avoid getting EFAST2 specific error messages applicable to a transmitted filing, and thus can be helpful in avoiding these increased penalties. Note: even if a third party such as the recordkeeper prepares the filings, it is the plan sponsor’s responsibility to ensure accuracy before signing them.

What you should know

Failing to sign the form is the number one reason that filers receive a "Processing-Stopped" error message when submitting the Form 5500 and Form 5500-SF.
The Form 5500 and Form 5500-SF must have the proper Employer Identification Number (EIN) and plan number. Switching EINs without reporting the change could result in correspondence from the DOL or the IRS.
The time period entered in Part I of the Form 5500 and Form 5500-SF cannot be greater than twelve months.
Preparers must make sure that the valid business code entered best describes the nature of the plan sponsor's business.
Preparers are required to indicate all the applicable Funding and Benefit Arrangements and ensure that they are filing all the required schedules and attachments.
Preparers are obligated to “validate,” or perform a check of errors, before the filing is submitted to the government.

$2.50

Per day penalty for failure to file a Form 5500, up to $150,000.

$10

Per day penalty per participant for failure to file Form 8955-SSA, up to $50,000.

10X

Increase in penalties over the old schedule.

Schedule an appointment

SCHEDULE NOW

Find a branch near you

FIND NOW

Important Legal Disclosures and Information

The material presented herein is of a general nature and does not constitute the provision by PNC of investment, legal, tax, or accounting advice to any person, or a recommendation to buy or sell any security or adopt any investment strategy. Opinions expressed herein are subject to change without notice. The information was obtained from sources deemed reliable. Such information is not guaranteed as to its accuracy.

The PNC Financial Services Group, Inc. (“PNC”) uses the marketing name PNC Institutional Asset Management® for the various discretionary and non-discretionary institutional investment, trustee, custody, consulting, and related services provided by PNC Bank, National Association (“PNC Bank”), which is a Member FDIC, and investment management activities conducted by PNC Capital Advisors, LLC, an SEC-registered investment adviser and wholly-owned subsidiary of PNC Bank (“PNC Capital Advisors”). PNC does not provide legal, tax, or accounting advice unless, with respect to tax advice, PNC Bank has entered into a written tax services agreement. PNC Bank is not registered as a municipal advisor under the Dodd-Frank Wall Street Reform and Consumer Protection Act.

“PNC Institutional Asset Management” is a registered mark of The PNC Financial Services Group, Inc.

Investments: Not FDIC Insured. No Bank Guarantee. May Lose Value.