401(k) Penalties Chart


2024

2023

2022

DOL

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

 Up to $190 per day not to exceed $1,906 per request Up to $184 per day not to exceed $1,846 per request Up to $171 per day not to exceed $1,713 per request

Form 5500

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

 Up to $2,670 per day that the filing is late Up to $2,586 per day that the filing is late Up to $2,400 per day that the filing is late

SPD, SAR and Plan Document

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

 $2,112 per day per failure $2,046 per day per failure $1,899 per day per failure

“Blackout” Notice

Failure to provide “blackout” period notice

 $169 per day for each failure $164 per day for each failure $152 per day for each failure

Notice of Right to Diversify

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

 $169 per day for each failure $164 per day for each failure $152 per day for each failure

Failure to Produce Reports or Maintain Records

(For example, benefit statements)

 $37 per plan year per employee $36 per plan year per employee $33 per plan year per employee

 

ERISA Criminal Liability and Fiduciary Breach Penalties

 

2024

For willful violations of ERISA’s reporting and disclosure requirements

 Up to $100,000 in fines per individual ($500,000 for companies), 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 ($500,000 for companies), and possible imprisonment for up to 10 years

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