401(k) Penalties Chart


2022

2021

2020

DOL

Failure to furnish to the DOL any requested information relating to the employee benefit plan

Up to $171 per day not to exceed $1,713 per request Up to $161 per day not to exceed $1,613 per request Up to $159 per day not to exceed $1,594 per request

Form 5500

DOL penalties for failure or refusal to file annual report (i.e., Form 5500)

Up to $2,400 per day that the filing is late Up to $2,259 per day that the filing is late Up to $2,233 per day that the filing is late

SPD and SAR

Failure to provide an SPD, SAR, or plan document within 30 days of receiving a request from a plan participant or beneficiary

$110 per day per employee $110 per day per employee $110 per day per employee

Auto Enrollment Notice

Failure to provide automatic enrollment notice

$1,899 per failure $1,788 per failure $1,767 per failure

“Blackout” Notice

Failure to provide “blackout” period notice

$152 per failure $143 per failure $141 per failure

Notice of Right to Diversify

Failure to provide notice of right to diversify investments (company stock plan)

$152 per failure $143 per failure $141 per failure

Failure to Produce Reports or Maintain Records

(For example, benefit statements)

$33 per employee $31 per employee $31 per employee

 

ERISA Criminal Liability and Fiduciary Breach Penalties

 

2021

For willfull violations of ERISA’s reporting and disclosure requirements

Up to $100,000 in fines per individual, and possible imprisonment of up to 10 years

For knowingly making false statements or concealing/failing to disclose any fact needed to prepare ERISA reports

Fines determined under federal sentencing guidelines and possible imprisonment of up to 5 years

For coercive interference with a participant’s rights under an employee benefit plan

Up to $100,000 in fines, and possible inprisonment

Theft or embezzlement from an employee benefit plan

Fine determined under federal sentencing guidelines and possible imprisonment of up to 5 years

Breach of Fiduciary Duties under ERISA

Monetary penalties up to 20% of the recovery amount;

Personally liable to restore any losses to the Plan;

Removal as a fiduciary; or

Criminal prosecution including fines and imprisonment