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 Printer Friendly Version • Go To The
Penalty Calculator
EBSA is providing the Delinquent Filer Voluntary
Compliance Program (DFVCP) penalty calculator to aid you in
the filing process and to reduce the number of over and under payments
made to the DFVCP. While the use of the calculator is not
required, its use is highly recommended to ensure compliance with the
program’s requirements.
The calculator is designed to calculate the DFVCP penalty for each plan that is submitted under the program. After entering the required fields the calculator will determine the amount owed on each individual plan filing, then provide a final amount due for all the filings being submitted for that plan.
The calculator is intended to be used for only one plan at a time. If more than one plan will be filing under the DFVCP, separate calculations
must be done on separate web pages for each plan.
Filings for separate years may be included in a single submission for a plan. If so, the total DFVCP penalty for that plan may be capped. If all of the filings in the submission are small plan filings (generally, fewer than 100 participants at the beginning of the plan year), the per-submission cap is $1,500. If any of the filings in the submission are large plan filings (generally, 100 participants or more at the beginning of the plan year), the per-submission cap is $4,000. Although the calculator does not take into account the "80-120" rule (29 CFR § 2520.103-5(d)), that rule is applied for the purposes of calculating the DFVCP penalties. If you are eligible to use the "80-120" rule and are unsure of the penalty calculation, you may contact the DFVCP at 202.693.8360. DFVCP penalties for 501(c)(3) organizations and for Top Hat and Apprenticeship programs are subject to a different calculation and cap as discussed below.
Caution: To be considered for the plan cap, all of the filings
must be included in the same submission, which generally means that they
must be included in the same envelope. If the filings are mailed separately, the penalty cap
will probably not apply.
The U.S. Department of Labor is not responsible for any loss of calculations and data. The Department does not monitor or save data you enter online, and you cannot save calculations online. You may save your results by printing a copy or copying/pasting a copy into a text document on your computer before terminating your session. For more information on the collection, use and disclosure of personally-identifying information, see the Department's Privacy and Security Statement.
Answer Yes or No to the three
questions at the top of the calculator:
If filing a Form 5500-EZ you are not eligible to use the
DFVCP. You may contact the IRS at 1.877.829.5500 for further
information. If filings are for a small
plan sponsored by a Code section 501(c)(3) organization
(including a Code section 403(b) plan), the per-submission cap
is $750. If you are a Top Hat or an Apprenticeship Training program your
penalty is $750 regardless of the number of plans maintained by the
sponsor or the degree of lateness. See the DFVCP FAQs for further
instructions.
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Enter the plan number of the filing(s) being submitted. Note: One plan per calculator submission.
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On lines 1 thru 5:
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Enter the day the plan year ended. Filings may be entered in any
order – most recent first, most recent last, or in no order at all.
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Enter the number of Beginning of the Year Participants (see line 6
of the applicable Form 5500).
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Enter the date the filing will be submitted to EFAST. If the filing was already submitted, call 1.866.463.3278 to
ascertain the receipt date and enter that date.
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Continue until all filings are entered. If more than 5 filings are
being submitted to the DFVCP for the plan, do not enter any
remaining filings.
The calculator will determine the number of days late and the penalty for each filing. The total penalty for the filings entered on the calculator will be
displayed below the chart. This penalty is only for the filings entered on
the calculator and mailed together in one envelope. All filings must be mailed in the same envelope in order to qualify
for the calculated penalty. Caution: If filings are mailed separately,
the penalty cap may not apply.
The calculator does not take into account the
"80-120" rule (§ 2520.103-5(d)). If you are eliglble to
use this rule and are unsure on the penalty calculation, you may contact
the DFVCP at 202.693.8360.
If you have questions about the calculator or the
DFVCP, our DFVCP FAQs provide
answers to the most commonly asked questions that we receive, or visit
the EFAST Web site or call 202.693.8360.
Facts - The ABC Company is a small company of 47 employees that makes widgets. During some routine housekeeping, it was discovered that the 2002 through 2005 Form 5500s for their 401(k) plan, number 001, were not filed. The plan is on a fiscal year that runs from
April 1 through March 30 and had 43 participants in 2002, 48 in 2003, 47 in 2004 and 2005. They have prepared all the forms and will be submitting the forms on June 15, 2007. Using
The DFVCP Penalty Calculator The applicant enters the
following data into the DFVCP Penalty Calculator:
The penalty due is limited to $1,500, the per-plan
cap for small plans.
Facts - The XYZ Company is a growing company that makes soccer supplies. Over the course of the last five years, the company has grown from 55 employees to nearly 150. During this time the company did not file a Form 5500 for their profit sharing plan, plan number 002. They were recently informed that filings were required and they have since been prepared. XYZ will be submitting the Form 5500s for the plan years 2002 through 2006 on July 10, 2007.
Using The DFVCP Penalty Calculator The applicant enters the
following data into the DFVCP Penalty Calculator:
The penalty due is limited to $4,000, the
per-plan cap for large plans, assuming that all years are
submitted together. The 2006 filing was not late, so there is no penalty for that filing. The 2005 and 2004 filings are large plans, so the penalty is capped at the large plan amount although two filings were small plans.
Facts
The LMNOP Organization is a small literacy group that is teaching adults to read. They are a 501(c)(3) organization and they have a 403(b) plan that has a filing requirement. They were not aware of the need to file the Form 5500 and will be filing on July 11, 2007 for all six years they have had the plan.
Using The DFVCP Penalty Calculator The applicant enters the
following data into the DFVCP Penalty Calculator:
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Questions answered No, Yes, No
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Plan number: 001
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Line 1:
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Line 2:
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Line 3:
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Line 4:
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Line 5:
Note: If more than 5 filings are
being submitted for the plan, do not enter any
remaining filings. However, these additional filings must be
included in the package submitted to the DFVCP to be covered by the
per plan cap.
The penalty for this plan is $750 assuming that all years are submitted together. The 2006 filing was not late, so there is no penalty for that filing. Since the plan is sponsored by a 501(c)(3) organization and the plan never exceeded 99 participants, the plan qualifies for the special rule pertaining to small 501(c)(3) organizations.
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