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Showing results for tags 'Excise Taxes'.
Found 3 results
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If an employer fails to deposit a top heavy minimum contribution for a prior year, should form 5330 be filed and an excise tax paid. If so, it appears it would be shown as a prohibited transaction similar to late deposit of employee deferrals rather than a late required employer contribution under minimum funding standards.
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Plan Sponsor applied an incorrect match % to certain employees for a 3 year period (in addition to failing ADP/ACP). All employee defferrals were prcessed timely and properly. Correction for the incorrect matching % is being done via VCP. Would this also require a VFCP filing? My take would be yes, since a prohibited transaction occured as a result of the incorrect match (and not corrected with the year) and for the lost earnings. However, I do not see any applicable boxes on the VFCP model application. Any suggestions?
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A sole-proprietor write various checks from the profit sharing plan to various companies throughout the year for personal expenses. The sole-proprietor indicates it is an in-service distribution. Form 1099-R was filed and distribution was included in income on the Form 1040. Is this correct? Or would it be a prohibited transaction since the sole-proprietor is a disqualified person? Would this be considered an in-direct loan to the disqualified person? Thank you.
