BG5150 Posted January 27, 2021 Share Posted January 27, 2021 Hypothetical situation: 2019 plan fails the ADP test, and they correct it with refunds August 2020. The 5330 tax is $1,050 and was paid. Then this January, they realize that some HCE comp was lower than in reality. With the new numbers, the plan passes. What happens to that $1,050 excise tax? The plan didn't really need to be corrected, so it couldn'tve been late. Can you ask for a refund of your tax? QKA, QPA, CPC, ERPATwo wrongs don't make a right, but three rights make a left. Link to comment Share on other sites More sharing options...
C. B. Zeller Posted January 27, 2021 Share Posted January 27, 2021 I believe you would just need to file an amended 5330. There is a section in the instructions for "Claim for Refund or Credit/Amended Return." Bill Presson and Luke Bailey 2 Free advice is worth what you paid for it. Do not rely on the information provided in this post for any purpose, including (but not limited to): tax planning, compliance with ERISA or the IRC, investing or other forms of fortune-telling, bird identification, relationship advice, or spiritual guidance. Corey B. Zeller, MSEA, CPC, QPA, QKA Preferred Pension Planning Corp.corey@pppc.co Link to comment Share on other sites More sharing options...
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