The Department of Labor’s maximum penalty for failure or refusal to properly file a Form 5500 remains $2,739 per day for 2026. That is the same amount that applied in 2025, and for 2026 there is no new inflation-adjusted increase.
This is a little unusual because DOL penalties are normally adjusted for inflation each year. The reason there is no 2026 increase is not that the Form 5500 penalty was overlooked. DOL has formally announced that the 2026 inflation adjustment is cancelled because the required October 2025 CPI-U data was not published.
What Changed for 2026?
Under the Federal Civil Penalties Inflation Adjustment Act Improvements Act of 2015, DOL is generally required to adjust many civil monetary penalties for inflation each year. DOL explains that the annual adjustment is based on the percentage increase in the Consumer Price Index for All Urban Consumers, or CPI-U, for October of the prior year.
For 2026, that process broke down because the Bureau of Labor Statistics did not publish the October 2025 CPI-U data due to a lapse in funding. DOL stated in the Federal Register that the statute requires the adjustment to be based specifically on the October CPI-U data, and that the statute does not allow an alternative calculation method. As a result, DOL said the 2026 adjustment is “cancelled entirely.”
DOL also explained that the Office of Management and Budget instructed agencies to continue using the 2025 civil monetary penalties as applicable. Consistent with that guidance, DOL stated that it is not making any adjustments to civil money penalties under the Inflation Adjustment Act in 2026.
What Is the Current Form 5500 Penalty?
For 2025, DOL increased the ERISA Section 502(c)(2) penalty for failure or refusal to properly file a plan annual report from $2,670 per day to $2,739 per day. That is the Form 5500 penalty most employers and plan sponsors are thinking about when they hear the scary “per day” number.
Because DOL made no 2026 inflation adjustment, that $2,739 per day amount remains the current maximum DOL penalty for 2026. It applies as the maximum penalty amount for the DOL side of the Form 5500 filing obligation, not as an automatic penalty that is always imposed in full.
Why This Still Matters
Even though the penalty did not increase for 2026, the number is still significant. A penalty of up to $2,739 per day can add up quickly when a Form 5500 is missed, filed late, or not properly filed.
Employers should also remember that Form 5500 penalties can involve more than one agency. The DOL penalty is the large daily ERISA penalty, while the IRS has its own penalties for late Form 5500-series filings. For example, the IRS states that without its late filer relief program, a plan sponsor can face a penalty of $250 per day, up to $150,000 for each late Form 5500 or Form 5500-EZ, plus interest.
What About Penalty Relief?
If a Form 5500 was missed, the employer or plan administrator should not ignore it. The DOL’s Delinquent Filer Voluntary Compliance Program, often called DFVCP, may allow eligible filers to correct delinquent Form 5500 filings while paying a reduced penalty instead of facing the full DOL daily penalty.
The IRS also generally waives certain late filing penalties for Form 5500-series filers who satisfy the DOL’s DFVCP requirements. However, the IRS notes that additional requirements may apply, including filing any required Form 8955-SSA for separated participants with deferred vested benefits.
Bottom Line
For 2026, the DOL Form 5500 penalty remains up to $2,739 per day. The expected inflation adjustment was not merely delayed. DOL has announced that the 2026 adjustment is cancelled because the required October 2025 CPI-U data was not available, and agencies were instructed to continue using the 2025 penalty amounts.
That means employers should continue using $2,739 per day as the current DOL Form 5500 penalty figure for 2026. The lack of a new increase does not make the filing requirement any less important, and employers with late or missing filings should look into correction options as soon as possible.
Sources
The following sources were used in preparing this article:
- Department of Labor, Employee Benefits Security Administration: “Adjusting ERISA Civil Monetary Penalties for Inflation”
https://www.dol.gov/agencies/ebsa/about-ebsa/our-activities/resource-center/fact-sheets/adjusting-erisa-civil-monetary-penalties-for-inflation - Federal Register: “Federal Civil Penalties Inflation Adjustment Act Annual Adjustments for 2025”
https://www.federalregister.gov/documents/2025/01/10/2024-31602/federal-civil-penalties-inflation-adjustment-act-annual-adjustments-for-2025 - Federal Register: “Department of Labor Federal Civil Penalties Inflation Adjustment Act Annual Adjustments for 2026”
https://www.federalregister.gov/documents/2026/05/27/2026-10456/department-of-labor-federal-civil-penalties-inflation-adjustment-act-annual-adjustments-for-2026 - IRS: “Penalty Relief Program for Form 5500-EZ Late Filers”
https://www.irs.gov/retirement-plans/penalty-relief-program-for-form-5500-ez-late-filers - IRS: “IRS Penalty Relief for DOL DFVC Filers of Late Annual Reports”
https://www.irs.gov/retirement-plans/irs-penalty-relief-for-dol-dfvc-filers-of-late-annual-reports