As October 15 approaches, we would like to remind you that this is the deadline for calendar-year employee benefit plans that require a 401(k) plan audit to file their Form 5500, accompanied by the independent auditor’s report. Both the filing and the audit report are required under ERISA and are due on October 15 for plans that have obtained an extension.
If Congress and the President do not enact new appropriations or a continuing resolution by midnight on September 30, a lapse in funding could trigger a federal government shutdown beginning at 12:01 a.m. on October 1, unless intervening legislation is enacted. During a shutdown, non-essential federal operations stop; however, the EFAST2 electronic filing system used for Form 5500 submissions is expected to remain operational. Accordingly, the Department of Labor and IRS will continue to treat October 15 as the filing deadline for both the Form 5500 and the attached 401(k) plan audit report.
If your plan’s audit and/or Form 5500 are not finalized by October 15, we recommend the following:
- File the Form 5500 by the deadline, even if the audit is not yet complete. EFAST2 will accept the filing without the audit attached, though the filing will be considered incomplete.
- Once the audit is complete, the Form 5500 must be amended to include the auditor’s report. In many cases, the DOL issues a 45-day letter requesting the missing report.
- If the filing is ultimately late or incomplete, the plan may be able to correct it under the Delinquent Filer Voluntary Compliance Program (DFVCP), which offers reduced penalties if used before the DOL issues a formal notice.
Please remember that our firm provides audit services but does not prepare or file the Form 5500 on your behalf. You should coordinate directly with your Form 5500 preparer to ensure a timely submission and discuss whether an “incomplete filing” is appropriate if the audit is not yet ready.
We encourage you to plan ahead to ensure that all required filings and attachments are submitted on time. If you have any questions about the audit timeline or next steps, please do not hesitate to contact us.
