What Is the Delinquent Filer Voluntary Compliance Program (DFVCP)?

DFVCP is the Department of Labor's reduced-penalty program for an ERISA plan administrator that discovers a missing or late Form 5500-series annual report before DOL's enforcement process closes the voluntary window. For a 401(k), its value is unusually concrete: the program's $10-per-day calculation and low plan-level caps can replace potentially enormous daily DOL exposure.^[1][2][4]

The trade-off is equally concrete.

The administrator has to come forward first enough to remain eligible.

A late filing discovered internally is a compliance problem.

A late filing discovered after DOL has already moved into penalty enforcement is a different problem.

DFVCP Fixes Reporting, Not the 401(k)

The program addresses one failure:

late annual reporting under Title I of ERISA.^[1][4]

It does not repair:

• missed employee contributions
• incorrect employer matching
• vesting errors
• prohibited transactions
• fiduciary breaches
• document failures
• nondiscrimination failures
• participant disclosure failures.

INV-069 explains Form 5500.

INV-124 explains DOL fiduciary correction.

The filing program belongs between them:

annual report correction, not plan correction.

The Program Is Administered by DOL

DFVCP is an Employee Benefits Security Administration program.^[1]

That matters because Form 5500 is a joint federal filing used by:

• Department of Labor
• Internal Revenue Service
• Pension Benefit Guaranty Corporation

for different statutory purposes.

DOL can reduce its own civil penalty through DFVCP.

IRS relief is coordinated separately.

Do not treat one agency's program as a universal release.

Why the Program Matters Economically

Outside the voluntary program, ERISA Section 502(c)(2) permits DOL to assess a substantial daily civil penalty against a plan administrator that fails or refuses to file a complete and accurate annual report.

The 2025 adjusted maximum was:

$2,739 per day.^[6][11]

Normally, inflation-adjusted ERISA penalties change annually.

For 2026, DOL did not make an inflation adjustment because the federal inflation-adjustment process lacked the required October 2025 CPI-U data. The Department therefore continued using the 2025 amounts.^[12]

So the 2026 maximum remains:

$2,739 per day.

That is the outside-program exposure ceiling.

It is not the DFVCP rate.

The DFVCP Rate Is $10 Per Day

The reduced schedule starts at:

$10 for each day the annual report is late.^[1][2]

Then caps apply.

For a deeply delinquent filing, the cap usually matters more than the daily arithmetic.

Small Plan: $750 Per Filing

For an eligible small plan, the ordinary maximum is:

$750 for one delinquent annual report.^[1][2]

Example:

Form is:

150 days late

Raw program calculation:

150 × $10 = $1,500

Small-plan per-filing cap:

$750

Program amount:

$750

The cap cuts the calculated amount in half.

Small Plan: $1,500 Per Plan

When several delinquent annual reports for the same small plan are submitted together, the reduced schedule limits the total to:

$1,500 per plan.^[1][2]

That is one of DFVCP's most powerful features.

Example: Three Missing Years

Assume the same 401(k) failed to file for:

• 2023
• 2024
• 2025

and each filing has individually reached its $750 cap.

Separate per-filing arithmetic:

$750 + $750 + $750 = $2,250

If the years qualify and are included in one submission for the plan:

$1,500 aggregate ceiling can control.^[2]

Multi-year preparation should therefore be coordinated before payment.

Large Plan: $2,000 Per Filing

For a large plan, the ordinary per-filing maximum is:

$2,000.^[1][2]

The basic $10-per-day rate still applies until that cap is reached.

A filing 50 days late:

$500

A filing 300 days late:

raw amount $3,000

capped at:

$2,000

Large Plan: $4,000 Per Plan

Multiple delinquent filings for the same large plan can be capped at:

$4,000 per plan

when submitted under the program as required.^[1][2]

That can turn years of missed filings into a manageable DOL penalty.

The reports still have to be prepared correctly.

Small 501(c)(3) Plans Have a Lower Plan Cap

A qualifying small plan sponsored by a

Code Section 501(c)(3) tax-exempt organization.^[1][2]

Its submission cap is:

$750

rather than the ordinary $1,500 small-plan ceiling.

That rule can apply to qualifying retirement arrangements within the program.

It is less relevant to a conventional for-profit 401(k), but it matters when comparing plan types.

The Small/Large Plan Test Changed for Defined Contribution Plans

This is where old DFVCP explanations can become wrong.

Historically, Form 5500 small-plan status generally looked to broad participant counts.

Beginning with defined contribution plan years on or after January 1, 2023, Form 5500 reporting changed the participant-count methodology.^[2][5][6]

For a 401(k), the relevant count generally focuses on participants with:

account balances

rather than every participant who is merely eligible.

That can move a plan from the large-plan filing category to the small-plan category.

Why the 2023 Change Matters to DFVCP

The program's calculator uses the current reporting rules to determine plan size.^[2]

For a defined contribution filing beginning in 2023 or later, it generally asks for the number of participants with account balances at the beginning of the plan year.

For a first-year situation with no meaningful beginning balance count, the applicable end-of-year account-balance count can become relevant under the current instructions/calculator rules.^[2][5]

Do not determine the cap using an old:

"100 eligible employees = large plan"

shortcut.

Example: 160 Eligible Employees, 72 Accounts

Assume a 2025 calendar-year 401(k):

• 160 employees are eligible
• 72 participants have account balances at the beginning of the year.

For current defined-contribution Form 5500 size rules, the account-balance count can put the plan in the:

small-plan

reporting category.

Using all 160 eligible employees could incorrectly push the sponsor toward the large-plan DFVCP cap.

The filing year matters.

Older Defined Contribution Years Use the Older Count

DOL distinguishes the filing years this way:

Plan years beginning before January 1, 2023

Use the participant count applicable under the older reporting rule.

Plan years beginning on or after January 1, 2023

Use the newer account-balance measure for defined contribution plans.^[2]

A five-year delinquent filing project can therefore require two different counting methods.

That is not an edge case.

It is exactly the kind of multi-year cleanup DFVCP is designed to handle.

The 80-120 Rule Still Matters

Form 5500 reporting includes an:

80-120 participant rule.^[2][5]

When its conditions are met, a plan in the 80-to-120 range may be allowed to continue filing in the same small/large category used for the prior year.

This can preserve small-plan treatment even when the count moves above 99.

Do not classify a 104-account 401(k) automatically as large without checking the prior-year filing category and the rule.

A Plan Can Change Size Across Delinquent Years

Suppose a plan has four missing reports.

Size:

• Year 1: small
• Year 2: small
• Year 3: large
• Year 4: large.

If any delinquent year in the submission is large, the multi-year submission uses the $4,000 large-plan ceiling.^[2]

That is a subtle point.

The sponsor does not get a hybrid:

$1,500 small cap + separate large cap

for one consolidated plan submission.

Example: Five Missing Years, One Large Year

Raw capped amounts:

• Year 1 small: $750
• Year 2 small: $750
• Year 3 small: $750
• Year 4 large: $2,000
• Year 5 small: $750

Total individual caps:

$5,000

Because one delinquent year is large, the submission can be capped at $4,000 under the large-plan rule.^[2]

That is still substantial relief.

It is not the $1,500 small-plan ceiling.

Eligibility Begins With Title I of ERISA

DFVCP is available only where the annual report is required under:

Title I of ERISA.^[1][4]

That is why the program works for many ordinary private-employer 401(k) plans.

It is also why it does not cover every retirement-plan annual return.

Form 5500-EZ Does Not Use DFVCP

A one-participant plan filing:

Form 5500-EZ

does not use DOL's program.^[1][2][9]

Such a plan generally is outside Title I of ERISA for this reporting purpose.

IRS has a separate:

Form 5500-EZ late-filer penalty-relief program.^[9]

Do not send an owner-only plan into the wrong correction program.

A One-Participant Form 5500-SF Is Also Outside DFVCP

An owner-only plan can sometimes file Form 5500-SF in circumstances permitted by IRS rules.

That does not transform it into a Title I ERISA plan.

DOL's calculator expressly excludes a Form 5500-SF filed as a:

one-participant plan

is not eligible.^[2]

Form label does not determine ERISA status.

DFVCP Is for Original Delinquent Filings

DOL expressly excludes amended filings from this relief route.^[1][2]

That distinction prevents another common mistake.

Never filed

Potential DFVCP case.

Filed on time but later discovered an error

Amend the filing as required.

That is not a delinquent-filer penalty case merely because the amendment occurs years later.

What If the Original Filing Was Incomplete?

An annual report must be complete and accurate.

A materially incomplete filing can still create federal penalty exposure.^[5][6][8]

But do not automatically label every later correction:

DFVCP.

Determine whether the government treats the original submission as filed, deficient, delinquent or nonfiled under the applicable enforcement rules.

The procedural diagnosis matters.

The DOL Notice Cutoff Is the Most Important Eligibility Rule

The program is designed for:

voluntary

compliance.

DOL describes eligible administrators as late filers who have not yet been notified of the annual-report failure.^[1][2]

One explicit disqualifier on DOL's current page is a Notice of Intent to Assess a Penalty.^[1]

The practical rule is simple:

discover first, file first.

Do not wait for DOL to force the issue.

Written Notice Changes the Economics

Before the DOL cutoff:

• $10-per-day DFVCP rate
• low filing caps
• low aggregate ceilings.

After the cutoff:

ordinary enforcement and reasonable-cause/abatement procedures can govern instead.

DOL's reporting enforcement manual describes a separate enforcement penalty methodology once the matter moves beyond voluntary correction.^[4]

The difference can be dramatic.

An IRS Notice Is Different

DOL guidance states that receiving an:

IRS late-filer letter

does not automatically make the plan ineligible for the DOL program.^[1][4]

But it may affect:

IRS penalty relief.

This is one of the clearest examples of why the agencies must be analyzed separately.

Example: IRS Writes First

Sponsor receives an IRS Form 5500 filing notice.

No DOL written notice has been received.

The sponsor should not conclude:

"DFVCP is gone."

DOL's current materials say an IRS notice does not itself disqualify the plan from its program.^[1]

The sponsor should evaluate DOL eligibility immediately and separately assess the IRS notice.

Do Not Wait for the Agencies to Coordinate

Form 5500 data is shared across federal agencies.

A plan that receives an IRS notice may later receive DOL correspondence.

The fact that the DOL window appears open today does not mean it will remain open indefinitely.

If the filing is clearly missing:

delay has little strategic value.

How Do You Actually Use DFVCP?

For a standard Form 5500 or Form 5500-SF case, participation has two core pieces.^[1][2]

1. File the delinquent annual report

Submit the required filing electronically through:

EFAST2.

Identify it as a DFVCP filing in the applicable part of the form.^[1][2][5][6]

2. Submit the DFVCP penalty payment

Use the DOL penalty calculation/payment process.

The online calculator computes:

• days late
• per-filing amount
• applicable aggregate ceiling
• total submission amount.^[2]

The filings and payment have to line up.

The Correct Form Version Matters

A plan might discover missing returns from:

• 2017
• 2018
• 2021
• 2024.

Do not simply open the newest form and recreate every old year from memory.

DOL provides a:

Form 5500 Version Selection Tool

for delinquent filings.^[3]

The tool identifies which current or prior form version and schedules should be used for the relevant delinquent plan year.

This matters because the reporting forms changed over time.

Pre-2009 Filings Need Special Handling

EFAST2 is the current electronic filing platform.

DOL's DFVCP guidance contains procedures for filing older delinquent years through the modern system.^[2][3]

The principle is:

use the agency's current delinquent-filer conversion instructions

rather than trying to resurrect an obsolete paper workflow.

A 20-year-old plan year can still require a current electronic submission process.

Multiple Years Should Be Prepared Before Payment

The calculator is designed for:

one plan at a time.^[2]

When several years for that plan are delinquent, include them in one program submission to obtain the appropriate submission cap.

This is why the administrator should build the full missing-year inventory first.

Paying one year today and discovering four more tomorrow can complicate the cap calculation.

Example: One Year Found, Four More Exist

Benefits team discovers 2024 Form 5500 was never filed.

It immediately:

• files 2024
• pays $750.

Two weeks later it discovers:

• 2020
• 2021
• 2022
• 2023

were also missing.

The plan now has to address a fragmented filing history.

A better first step would have been:

search every required year before making the DFVCP submission.

Correction speed matters.

So does completeness.

The Program Penalty Uses the Original Due Date in a Missed-Extension Case

DOL's calculation instructions include an unusual rule.

If the administrator obtained an extension but ultimately filed after the extension period, DFVCP calculates its reduced penalty from the:

original filing due date.^[1][2]

That is stricter than simply counting from the extended date.

Example: Valid Extension, Then Missed

Calendar-year plan.

Ordinary due date:

July 31

Valid Form 5558 extension:

October 15

Actual filing:

December 1

The filing was not delinquent during the valid extension period.

But once the administrator uses DFVCP after missing the extension, DOL calculates the reduced amount from:

the original due date

rather than October 15.^[1][2]

Do not build the calculator manually from the wrong date.

The Online Calculator Is the Best Default

DOL's online tool is designed specifically for this filing program.^[2]

It handles:

• plan year end
• filing date
• plan size
• multiple delinquent years
• per-filing caps
• submission caps.

Using it also reduces arithmetic errors.

The calculator is not a substitute for determining eligibility.

A perfect penalty calculation does not rescue an ineligible filing.

Current Payment Is Electronic

Older DFVCP materials refer to check payment.

That procedure is stale.

DOL's payment page says that beginning:

September 30, 2025

EBSA no longer accepts checks for DFVCP penalty payments.^[2]

The current process uses electronic payment through the agency's system/Pay.gov.

If electronic payment is not possible, DOL directs the administrator to contact its:

Office of the Chief Accountant.^[2]

Do not mail a check because an old PDF still says to.

Payment Confirmation Is Not Program Acceptance

DOL's calculator warns that electronic payment confirmation does not itself mean:

the filing has been accepted into DFVCP.^[2]

The agency can still review whether:

• filing exists
• filing is complete
• data matches
• amount is correct
• plan is eligible.

Preserve confirmation.

Do not mistake it for a substantive closing letter.

Who Pays the DFVCP Penalty?

DOL's program materials place liability on the:

plan administrator.^[1][4]

Historical and program guidance also makes clear that the reduced penalty is not supposed to be paid from plan assets.

That allocation is sensible.

Participants should not finance the administrator's failure to file their plan's annual report.

A Corporate Administrator Can Still Bear the Cost

If the employer is the named plan administrator, the employer can be the entity paying the program amount.

The important point is:

do not charge participant accounts or plan trust assets for the administrator's penalty.

The plan documents and Form 5500 identify who holds the administrator role.

INV-080 explains that role.

IRS Penalties Are Separate

DOL participation does not, by itself, erase every Internal Revenue Code penalty.^[1]

The IRS has its own late-filing rules.

For returns due after December 31, 2019, the IRS filing-notice page states that the Code penalty for certain late Form 5500-series returns can be:

$250 per day

up to:

$150,000 per plan year.^[8]

That is separate from DOL's Section 502(c)(2) regime.

Some IRS Relief Is Coordinated Automatically

IRS Notice 2014-35 provides administrative relief for eligible filers that satisfy the DOL program and meet the notice's additional requirements.^[7]

A separate IRS application for that relief is generally not required.

The agencies coordinate eligibility.

But there is a crucial condition involving:

Form 8955-SSA.

Form 8955-SSA Can Decide Whether IRS Relief Works

Form 8955-SSA reports certain separated participants with deferred vested benefits.

It is filed with:

IRS

not DOL.

If a delinquent Form 5500 year also required Form 8955-SSA and that statement has not already been filed, the IRS says the filer must submit it under the special Notice 2014-35 procedure to qualify for the related IRS penalty relief.^[7]

Ignoring it can undermine the IRS side of the cleanup.

The Form 8955-SSA Must Be Filed on Paper for This Relief

Current IRS guidance continues to state that a Form 8955-SSA submitted for Notice 2014-35 relief must be filed:

on paper.^[7]

The filer should:

• check Part I, line C for the special extension
• enter DFVC in the description
• send it to the IRS under the applicable instructions.^[7]

Do not send participant Social Security number information through EFAST2.

The Modern Deadline Is 30 Days After DFVC Completion

Notice 2014-35 originally included a historical:

December 1, 2014

alternative deadline.

That date has long passed.

For a current filing, the relevant rule is generally:

within 30 calendar days after completing the DFVC filing^[7]

for any required delinquent Form 8955-SSA.

That 30-day calendar should be opened at the same time as the DOL submission.

Example: DFVCP Done, 8955-SSA Forgotten

Sponsor files three missing Form 5500s through DFVCP.

The plan had former employees with deferred vested benefits that should have been reported on Form 8955-SSA.

No 8955-SSA is filed.

DOL relief can still address the DOL annual-report penalty.

The sponsor has not necessarily satisfied the conditions for the coordinated IRS relief.

One missing companion filing can change the result.

Current IRS Web Pages Contain an Old Penalty Figure

There is a documentation trap worth noting.

The IRS's current DFVC-relief page still contains older text describing a:

$25-per-day / $15,000

Form 5500 penalty in its list of penalties that can be waived.^[7]

The IRS's separate current filing-notice page reflects the SECURE Act increase for returns due after December 31, 2019:

$250 per day / $150,000 maximum.^[8]

For current exposure, use the updated statutory/filing-notice amount rather than relying on the stale number embedded in the older relief summary.

The relief framework remains in use.

The penalty figure on that one page is outdated.

DFVCP vs. Form 5500-EZ Late-Filer Relief

Choose the program from the plan's legal filing obligation.

Not the business owner's preference.

The Form 5500-EZ Program Has Different Economics

IRS's separate program currently uses a fee of:

$500 per delinquent return

with a maximum of:

$1,500 per submission for the same plan.^[9]

That sounds similar to DFVCP's small-plan ceiling.

It is not the same program.

Eligibility, filing method and agency are different.

DFVCP vs. Ordinary DOL Exposure

The attraction of the program is not subtle.

The 2026 Maximum Stayed at $2,739 Per Day

Federal law normally requires annual inflation adjustments.

In 2026, DOL announced no adjustment because the October 2025 CPI-U data needed by the statutory formula was unavailable after the 2025 appropriations lapse.^[12]

OMB directed agencies to continue the 2025 amounts.

The result is $2,739 per day in both 2025 and 2026. That figure is a maximum under the ordinary enforcement framework, not an automatic daily assessment in every late-filer case.

DFVCP Does Not Validate the Filed Data

Submitting a delinquent annual report does not mean DOL, IRS or PBGC has determined:

• participant count is correct
• assets reconcile
• audit requirement was met
• service-provider data is accurate
• plan is qualified
• fiduciaries complied with ERISA.

Form 5500 publication is not government approval.

INV-069 explains this in detail.

Do Not Rush a Wrong Return Just to Beat the Clock

Speed matters because the voluntary window can close.

Accuracy also matters.

A rushed delinquent filing with:

• wrong participant count
• missing audit
• inconsistent assets
• incorrect plan number
• omitted schedules

can create a second problem.

The right workflow is:

move quickly, but reconcile before filing.

A Missing Audit Can Block a Complete Large-Plan Filing

If a delinquent year required an independent qualified public accountant report, filing the main form without the required audit does not necessarily produce a complete annual report.

INV-078 covers the audit requirement.

Before submitting a large-plan DFVCP filing, determine:

• whether audit was required
• whether a waiver applied
• whether the audit can be completed for the old year
• whether opening balances create issues in later audits.

The annual report is a package.

Not a cover sheet.

Small-Plan Audit-Waiver Conditions Still Matter

A plan that expects to file as small may also rely on the small-plan audit waiver.

That can require checking:

• qualifying plan assets
• enhanced bonding for certain nonqualifying assets
• participant disclosures.

INV-077 explains the enhanced fidelity-bond rule that can become relevant.

A late filing does not erase the underlying audit requirements for that year.

Example: Missing Filing Reveals Inadequate Bond

Sponsor reconstructs a 2024 Form 5500.

During review it discovers:

• plan used small-plan audit waiver
• nonqualifying assets exceeded the applicable threshold
• bond amount was insufficient.

DFVCP addresses:

the late annual report.

It does not retroactively make the audit-waiver conditions true.

That separate compliance issue needs analysis.

Example: Missing Filing Reveals Late Deferrals

Form 5500 preparation identifies delinquent participant contributions.

Now two correction tracks exist.

Reporting

DFVCP.

Fiduciary transaction

Potential VFCP or correction during investigation, plus Section 4975/Form 5330 analysis.

INV-124 and INV-127 cover those paths.

One missing return can reveal a much more important underlying problem.

Example: Form 5500 Was Late Because TPA Failed

Sponsor says:

"Our TPA was supposed to file it."

That may create a contractual claim against the TPA.

It does not automatically transfer the ERISA annual-report obligation away from the plan administrator.

INV-080 explains why vendor preparation and legal responsibility are different.

The government does not need to honor the outsourcing contract's internal blame allocation.

Reasonable Cause Is an Alternative Strategy After the Window Closes

Once DFVCP is unavailable, a plan administrator can face ordinary DOL or IRS penalty procedures.

Reasonable-cause relief may be available depending on:

• agency
• penalty
• facts
• timing.

That is not the same as DFVCP.

The voluntary program offers predictable caps.

Reasonable-cause relief requires a factual case and can be denied.

Do Not Intentionally Wait for a Notice to Argue Reasonable Cause

If a missing filing is discovered before DOL notice, voluntarily using the defined relief program often gives the administrator a clearer economic path.

Waiting can trade:

known capped penalty

for:

uncertain enforcement + reasonable-cause argument.

There can be unusual facts where counsel chooses another route.

As a default compliance strategy, intentional delay is hard to justify.

Build a Missing-Year Inventory First

Before filing anything, create:

This table exposes the real project.

The penalty calculator comes after it.

Reconcile Each Year to the Next

For a multi-year cleanup, ending values should generally tie sensibly to next-year opening values.

Reconcile:

• assets
• participant counts
• contribution totals
• benefit payments
• transfers
• audit status
• provider information.

A string of delinquent filings created independently can contradict itself.

That invites questions.

The Plan Number Must Stay Consistent

Each employee benefit plan generally has a three-digit plan number.

A multi-year cleanup should confirm whether the same plan:

• continued
• merged
• terminated
• was replaced
• changed number improperly.

Do not generate a new plan identity merely because a vendor changed.

Form 5500 history is part of the plan's regulatory record.

Terminated Plans Still Need a Final Filing

A 401(k) generally continues to have annual-report obligations until the relevant final-return conditions are met, including distribution of plan assets.

A sponsor that terminated the plan operationally but left:

• residual assets
• uncashed checks
• missing participants

can discover that the final annual-report obligation continued.

Do not assume:

"the company stopped contributions, so the plan ended."

Plan termination is a process.

A Late Final Form Can Use DFVCP if Otherwise Eligible

If the terminated ERISA plan should have filed a final Form 5500 but did not, the late final report can potentially use the program if the administrator still satisfies the eligibility rules.

The filing should accurately identify:

• final return/report status
• asset disposition
• termination information.

Do not mark a return final while assets remain merely to stop future filings.

The IRS Relief Side Needs Its Own Checklist

For every delinquent year, ask:

1. Is the plan eligible for DFVCP?
2. Did the plan complete the DOL program?
3. Was Form 8955-SSA required?
4. If yes, was it already filed?
5. If not, can it be filed under Notice 2014-35?
6. Is the 30-day paper-filing deadline calendared?
7. Has an IRS notice already been issued?
8. Does that notice change the relief posture?

That last question may require tax counsel.

DOL eligibility and IRS relief are related.

They are not identical.

Participant Data Should Never Be Attached to Form 5500

Form 8955-SSA contains sensitive participant information.

DOL and IRS instructions warn against including Schedule SSA/Form 8955-SSA participant information in the EFAST2 Form 5500 filing.^[3][7]

The systems are separate for a reason.

Form 5500 filings are publicly searchable.

Participant Social Security number data is not supposed to become a public attachment.

Keep the DFVCP File Permanently

Retain:

Eligibility

• why Title I applied
• why no disqualifying DOL notice had been received
• plan-size analysis
• 80-120 analysis where relevant.

Filing

• each EFAST2 confirmation
• filing PDFs
• version-selection support
• audit attachment
• schedules.

Penalty

• calculator output
• electronic payment confirmation
• cap analysis.

IRS relief

• Form 8955-SSA analysis
• paper filing proof
• DFVC notation
• mailing evidence
• IRS correspondence.

Underlying compliance

• separate correction memo for anything discovered during reconstruction.

The file should explain not only:

what was filed

but:

why the relief applied.

DFVCP vs. VFCP vs. EPCRS

A late Form 5500 caused by a late-deferral problem can require:

all three analyses.

The acronym is not the diagnosis.

DFVCP vs. IRS Form 5500-EZ Relief

Confusing the programs can waste the voluntary window.

A Practical Multi-Year DFVCP Calculation

Assume a calendar-year 401(k) has four missing annual reports.

Plan status:

• 2022: small
• 2023: small
• 2024: small
• 2025: small.

Each is old enough to hit the individual $750 cap.

Raw per-filing capped total:

4 × $750 = $3,000

Submission cap:

$1,500

if submitted as one qualifying plan submission.^[1][2]

That is a 50% reduction from the already-reduced filing caps.

The comparison to ordinary DOL maximum exposure is much larger still.

A Practical Large-Plan Calculation

Assume three missing reports:

• 2023: large
• 2024: large
• 2025: large.

Each reaches $2,000 individual cap.

Raw:

$6,000

Aggregate ceiling:

$4,000

for the qualifying consolidated submission.^[1][2]

The same plan-level concept applies at a higher amount.

A Mixed-Size Calculation

Assume:

• 2022 small
• 2023 small under new account-balance count
• 2024 large
• 2025 small under 80-120 rule not available.

One year is large.

The mixed-size submission therefore uses the $4,000 large-plan ceiling.^[2]

This is why every year's classification belongs in the worksheet.

A Valid Extension Does Not Save the DFVCP Arithmetic Forever

Suppose a plan obtained a valid extension and filed during the extension.

No delinquency.

No DFVCP.

Now suppose it files after the extension expires.

The plan is delinquent.

For the program's reduced-penalty calculation, current guidance says the calculation runs from the original due date.^[1][2]

That rule should be programmed into the cleanup spreadsheet.

Frequently Asked Questions

What does DFVCP stand for?

Delinquent Filer Voluntary Compliance Program.

DOL's current pages also use the shorter DFVC Program label.^[1]

Who administers it?

The Department of Labor's Employee Benefits Security Administration.

What does it correct?

Late annual-report filings required under Title I of ERISA.

Does it fix a 401(k) operational failure?

No.

What is the basic penalty?

$10 per day under the program.^[1][2]

What is the small-plan ceiling?

Generally $750 per delinquent filing and $1,500 per plan for multiple delinquent filings submitted together.^[1][2]

What is the large-plan ceiling?

Generally $2,000 per filing and $4,000 per plan.^[1][2]

What if the plan changed from small to large?

If any delinquent year is large, DOL applies the $4,000 ceiling to the multi-year submission.^[2]

How is a 401(k) counted for plan size after 2022?

Beginning in 2023, defined contribution plans generally use participants with account balances for this reporting count.^[2][5]

Does the 80-120 rule still exist?

Yes, when its conditions are satisfied.^[2][5]

Can a one-participant 401(k) use DFVCP?

Not for its Form 5500-EZ or one-participant Form 5500-SF filing. IRS has a separate late-filer program.^[1][2][9]

Can an amended Form 5500 use DFVCP?

No. Current DOL guidance says amended filings are not eligible.^[1][2]

Can I use the program after DOL writes to me?

Use the program before disqualifying DOL notification; a Notice of Intent to Assess a Penalty is specifically listed as a cutoff.^[1]

What if IRS writes first?

An IRS notice does not automatically disqualify the plan from DOL DFVCP, although it may affect IRS relief.^[1][4]

Do I file the late report electronically?

Yes. Form 5500/Form 5500-SF DFVCP filings are submitted through EFAST2.^[1][2][5][6]

Can I pay with a check?

Not under the ordinary current process. DOL says checks stopped being accepted beginning September 30, 2025; use the electronic payment system or contact the Office of the Chief Accountant if electronic payment is not possible.^[2]

Does the calculator payment prove acceptance?

No.

Payment confirmation is not a substantive determination that all program conditions were satisfied.^[2]

Can the plan pay the penalty from participant assets?

The program places the penalty on the plan administrator; DOL guidance does not permit shifting that penalty to plan assets.

Does DFVCP remove IRS penalties too?

IRS Notice 2014-35 can provide separate relief when its requirements are met, including the Form 8955-SSA condition where applicable.^[7]

What do I do with a missing Form 8955-SSA?

For current Notice 2014-35 relief, the IRS directs qualifying filers to file the required delinquent Form 8955-SSA on paper, mark the special extension line with DFVC, and meet the notice's timing rules.^[7]

What is the current practical deadline?

Generally 30 calendar days after completing the DFVC filing for a current case.^[7]

What is the 2026 maximum DOL Form 5500 penalty outside DFVCP?

Up to $2,739 per day under the current adjusted Section 502(c)(2) maximum. DOL made no inflation adjustment for 2026, so the 2025 amount carried forward.^[6][11][12]

Does a successful DFVCP filing prove the plan is compliant?

No.

It resolves the late annual-report penalty through the program. Other plan failures remain separate.

The ROIStreet DFVCP Sequence

Identify every missing Form 5500/Form 5500-SF year → confirm the plan is subject to Title I of ERISA → verify the filing is an original delinquent filing, not an amendment → confirm no disqualifying DOL notice has closed the voluntary window → separate any IRS notice from the DOL eligibility analysis → determine the correct form version for each year → determine plan size using the rule applicable to that plan year → apply the post-2022 account-balance count for defined contribution plans where applicable → test the 80-120 rule → determine whether any year makes the multi-year submission large → reconstruct required schedules and audit attachments → reconcile assets, participants and cash flows across years → identify any separate operational or fiduciary failures discovered during reconstruction → file every delinquent annual report through EFAST2 with the proper DFVCP indicator → calculate all years for that plan together → pay electronically under the current DOL process → identify every year requiring Form 8955-SSA → complete the Notice 2014-35 paper filing within the current 30-day window where required → preserve filing, payment and IRS-relief evidence → correct the underlying plan separately

The most expensive mistake is rarely the original missed deadline.

It is discovering the omission while the voluntary window is still open, doing nothing, and allowing a capped $10-per-day correction program to turn into ordinary federal penalty enforcement.

Sources & References

1. U.S. Department of Labor — Employee Benefits Security Administration: Delinquent Filer Voluntary Compliance (DFVC) Program — https://www.dol.gov/agencies/ebsa/employers-and-advisers/plan-administration-and-compliance/correction-programs/dfvcp
2. U.S. Department of Labor — Employee Benefits Security Administration: DFVC Program Penalty Calculator and Online Payment — https://www.dol.gov/agencies/ebsa/employers-and-advisers/plan-administration-and-compliance/correction-programs/dfvcp/calculator
3. U.S. Department of Labor — Employee Benefits Security Administration: Tools and Resources for DFVCP — https://www.dol.gov/agencies/ebsa/employers-and-advisers/plan-administration-and-compliance/correction-programs/dfvcp/tools-and-resources
4. U.S. Department of Labor — Employee Benefits Security Administration: Reporting Compliance Enforcement Manual — OCA Enforcement Programs — https://www.dol.gov/agencies/ebsa/about-ebsa/our-activities/enforcement/oca-manual/chapter-4
5. U.S. Department of Labor / Internal Revenue Service / PBGC: 2025 Instructions for Form 5500 — https://www.dol.gov/sites/dolgov/files/ebsa/employers-and-advisers/plan-administration-and-compliance/reporting-and-filing/form-5500/2025-instructions.pdf
6. U.S. Department of Labor / Internal Revenue Service / PBGC: 2025 Instructions for Form 5500-SF — https://www.dol.gov/sites/dolgov/files/ebsa/employers-and-advisers/plan-administration-and-compliance/reporting-and-filing/form-5500/2025-sf-instructions.pdf
7. Internal Revenue Service: IRS Penalty Relief for DOL DFVC Filers of Late Annual Reports; Notice 2014-35 — https://www.irs.gov/retirement-plans/irs-penalty-relief-for-dol-dfvc-filers-of-late-annual-reports
8. Internal Revenue Service: IRS Filing Notices for Forms 5500, 5500-SF, 5500-EZ or 5558 — https://www.irs.gov/retirement-plans/irs-filing-notices-for-forms-5500-5500-sf-5500-ez-or-5558
9. Internal Revenue Service: Penalty Relief Program for Form 5500-EZ Late Filers — https://www.irs.gov/retirement-plans/penalty-relief-program-for-form-5500-ez-late-filers
10. Internal Revenue Service: Notice 2014-35 — Relief from Internal Revenue Code Late Filer Penalties — https://www.irs.gov/irb/2014-23_IRB
11. U.S. Department of Labor: Federal Civil Penalties Inflation Adjustment Act Annual Adjustments for 2025 — https://www.dol.gov/laws-regs/federalregister/2025-01-10-0
12. U.S. Department of Labor / Federal Register: No Civil Monetary Penalty Inflation Adjustment for 2026 — https://public-inspection.federalregister.gov/2026-10456.pdf

Educational Disclaimer

ROIStreet publishes educational content about retirement-plan annual reporting, federal penalties and correction programs. This article is not legal, tax, fiduciary, accounting, controversy or plan-administration advice. DFVCP eligibility depends on the exact plan, filing obligation, plan year, participant count, filing history, DOL correspondence, IRS correspondence, required schedules, audit status, companion Form 8955-SSA filing and current agency procedures.

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We strive to explain before we evaluate, present evidence before opinions, discuss risks alongside potential benefits, distinguish facts from analysis, and correct material errors transparently.

Our purpose is to help readers better understand investing—not to tell them what to do.