Get that late 5500 Filed
I used to have this recurring dream that I was back in college and it was my last semester. The dream was that there was this one class that I didn’t attend all semester and the finals were around the corner. Someone pointe doubt that the dream/nightmare was a fear of failing, perhaps they were right.
If I was a plan sponsor and I didn’t have the required Form 5500 filed, I don’t know if I’d sleep at night because that’s a nightmare that can’t go away. The reason why it’s a nightmare is that if it’s not corrected through the Department of Labor (DOL) Voluntary Compliance program and the DOL hits you with a penalty, the penalty for a late filing is $2,063 per day. If I knew my plan didn’t file the Form 5500 because one wasn’t completed, I would rush to call a third party administrator to have it done because you never know when the DOL will send out that letter asking for the filing.
It’s the most avoidable plan error and it’s amazing how many plans don’t file one on time for one reason or another. Then again, how many college students don’t attend a class all semester and show up for the finals?