Your Form 5500 is due October 15 and the audit isn't done. What now?
If your plan’s audit will not be finished by October 15, filing a complete Form 5500 late through the Department of Labor’s Delinquent Filer Voluntary Compliance Program (DFVCP) is usually cheaper and safer than filing on time without the audit report. DFVCP caps the penalty at $2,000 for a large plan. A filing without the report can be rejected, and an uncorrected rejection carries a penalty of up to $50,000.
Can I file Form 5500 on October 15 without the audit report?
You can submit it, but it does not count as a complete filing. EFAST2, the DOL’s filing system, accepts a large-plan Form 5500 with no independent auditor’s report attached. The DOL then treats it as deficient: the return is there, but a required part of it is missing.
Sponsors file this way hoping to stop the clock and attach the report later. It is the option most forum threads suggest, and it is the one this page exists to warn about.
What happens if the DOL rejects it?
You get 45 days to file a complete return, and that window cannot be extended. The sequence usually runs like this:
- An inquiry email from the DOL’s reporting compliance office, often within 30 to 45 days of the deadline.
- A Notice of Rejection. From the date of that letter you have 45 days to file a return with the audit report attached.
- A Notice of Intent to Assess a Penalty if you miss that window. The DOL’s enforcement manual sets the penalty for a missing auditor’s report at $150 a day, up to $50,000 per return.
Two things make this worse than it first looks. The 45 days only help if your audit is nearly finished, because a first audit rarely goes from start to signed report in that time. And once the DOL is pursuing the filing as deficient, DFVCP’s $2,000 cap is no longer there to fall back on. The DOL says a Notice of Intent to Assess a Penalty always disqualifies a plan from the program.
Is it cheaper to file late through DFVCP?
Usually, yes. DFVCP charges $10 a day from the original July 31 due date, capped at $2,000 for a single large-plan filing, and the IRS waives its own late-filing penalty for plans that complete the program and meet its conditions.
| Compare | File on time, no audit report | Finish the audit, file on time | Finish the audit, file late through DFVCP |
|---|---|---|---|
| Works when | The report is days away, and even then it is a gamble | Your auditor is nearly done now | The audit will not be done by October 15 |
| Likely cost | Nothing, if the report arrives before the DOL acts | Nothing | $10 a day from July 31, capped at $2,000 |
| Worst case | Rejection, then up to $50,000, with DFVCP no longer available | None | $2,000 |
| What you give up | Control of the timeline: the DOL's 45 days start when it decides | Nothing | Nothing, if you file before the DOL contacts you |
For a 2025 calendar-year plan, the DFVCP penalty passes $1,000 on November 8 and reaches the $2,000 cap on February 16, 2027. A filing made in early 2027 should budget for the full $2,000.
The one condition that matters: DFVCP is only open if you file before the DOL notifies you in writing about the late filing. Late-filer letters tend to take longer to arrive than deficiency letters, but there is no guaranteed window. Our guide to filing late through DFVCP covers how to file and pay.
When does finishing on time still work?
Only when your auditor is close to signing. If the fieldwork is done and the report is in review, ask your auditor directly whether it will be signed before October 15. If the answer is a firm yes, file the complete return on time. If it is “probably”, plan for DFVCP instead.
How long does a first 401(k) audit take?
Around 50 to 60 hours of audit work, once every document is in hand. Most of the time between engaging an auditor and receiving the report is spent waiting for documents, not doing the audit. That is why the most useful thing you can do this week is gather them.
A first audit also covers ground a repeat audit does not, starting with the plan’s opening balances. What a first auditor actually looks at explains the difference.
What should I gather now?
Your auditor will ask for these first, whoever they are:
- The plan document, adoption agreement and every amendment
- Recordkeeper year-end reports and the full-year transaction detail
- The recordkeeper's SOC 1 report
- Payroll registers for the year
- Dates each payroll's employee deferrals reached the plan
- Last year's Form 5500, if one was filed
- Any prior audit report and the auditor's contact details
Frequently asked questions
Does EFAST2 accept a Form 5500 without the audit report?
Yes. The system accepts the submission, but the Department of Labor treats a large-plan filing without the independent auditor's report as deficient and can reject it.
How long do I have after a Notice of Rejection?
45 days from the date of the letter to file a complete return. The DOL does not extend that window.
What is the penalty for a missing audit report?
Under the DOL's enforcement manual, up to $150 a day, capped at $50,000 per annual report, if the deficiency is not corrected after a Notice of Rejection.
Can I use DFVCP after the DOL rejects my filing?
Generally not. DFVCP requires filing before the DOL notifies you in writing, and the DOL says a Notice of Intent to Assess a Penalty always disqualifies a plan.
Is there a second extension past October 15?
No. Form 5558 extends a calendar-year plan's deadline from July 31 to October 15, and there is no further extension.
How long does a first 401(k) audit take?
Around 50 to 60 hours of audit work once all documents are available. The calendar time depends mostly on how quickly the documents arrive.
Can the plan pay the DFVCP penalty?
No. The plan administrator is personally liable, and the penalty cannot be paid from plan assets.
For questions about your own filing, talk to your TPA or ERISA counsel.