401(k) Penalties Chart


2023

2022

2021

DOL

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

 Up to $184 per day not to exceed $1,713 per request Up to $171 per day not to exceed $1,613 per request Up to $161 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 $2,5860 per day that the filing is late Up to $2,400 per day that the filing is late Up to $2,259 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

 $2,046 per failure $1,899 per failure $1,788 per failure

“Blackout” Notice

Failure to provide “blackout” period notice

 $164 per failure $152 per failure $143 per failure

Notice of Right to Diversify

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

 $164 per failure $152 per failure $143 per failure

Failure to Produce Reports or Maintain Records

(For example, benefit statements)

 $36 per employee $33 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