Bridgette Kling Posted September 9, 2021 Share Posted September 9, 2021 I have a plan that only has 3 participants and only the owner salary defers. During 2020 and part of 2021 there was a mess up at the payroll company and the salary deferrals were not deposited into the 401(k) account at all. The deferrals were withheld from each payroll just not deposited. If this only effects the owner is it necessary for him to pay lost earnings to himself and then is it further necessary to file a 5330 for him to pay penalties for himself? Link to comment Share on other sites More sharing options...
Jakyasar Posted September 9, 2021 Share Posted September 9, 2021 Hi This was discussed before as I posed the same question, cannot remember when, you will need to research. It is prior to August 2021 as I had the client file 5330 prior to 7/31 deadline. Hopefully you have a 5558 extension. The 401k gurus out there said the exemption for HCE/owner does not apply. If you are late to deposit, you will need to provide lost earnings, no matter who it is. Bridgette Kling 1 Link to comment Share on other sites More sharing options...
Recommended Posts
Create an account or sign in to comment
You need to be a member in order to leave a comment
Create an account
Sign up for a new account in our community. It's easy!
Register a new accountSign in
Already have an account? Sign in here.
Sign In Now