Wrangle identified discrepancies between the penalties listed in recent DOL letters and those published in the EBSA Enforcement Manual. Upon contacting the DOL, we were informed that penalties have increased to account for inflation. Prior to 2024, these penalties had remained unchanged for decades and are now catching up.
According to the DOL, the following should be taken very seriously: We expect 5500s to be filed timely and accurately. The updated penalties reflect that expectation.
When considering whether a 5500 needs to be amended, keep in mind that the DOL expects every filing to be complete and accurate. If it is not, the Plan Sponsor should carefully weigh the decision to amend, especially given the potential penalty risk if audited. When in doubt, we strongly recommend consulting an ERISA attorney.
If you have any questions, feel free to contact Ann McAdam at amcadam@wrangle5500.com.