How Can a Plan Sponsor Handle a Late Audit and 5500 Filing?

Q: It has become clear to me that we are not going to have our plan audit report/accountant’s opinion completed in time to file our 5500 filing for our ERISA 403(b) plan on time. Any suggestions as to what we should do?

Kimberly Boberg, Kelly Geloneck, Emily Gerard and David Levine, with Groom Law Group, and Michael A. Webb, senior financial adviser at CAPTRUST, answer:

A: Since penalties for a late or incomplete Form 5500 filing can be substantial, the Experts recommend contacting outside ERISA counsel regarding the appropriate course of action. It would also be helpful to work with your plan auditor to determine the realistic completion date for the audit report, so that counsel has this information.

The DOL does have a formal program to address late filings, known as the Delinquent Filer Voluntary Compliance Program, but again, counsel should be consulted as to how and when to use this program.

NOTE: This feature is to provide general information only, does not constitute legal advice and cannot be used or substituted for legal or tax advice.

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