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Showing results for tags 'late deferral'.
Found 3 results
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Situation: $4,000 payroll from April 1 2019, not deposited until January 10, 2020. Plan year is calendar year, so it requires 2019 and 2020 Form 5330 fillings. Calculated interest: 2019 $310 2020 $34 4975(a) First Tier Excise Tax calculation (entered on Form 5330 line 3a): 2019: $310x15% = $46.50 2020: ($310+$34) x 15% = $51.60. Calculation from Exhibit 4.72.11-6 on https://www.irs.gov/irm/part4/irm_04-072-011#idm139654188128704 4975(b) Second Tier Excise Tax calculation (entered on Form 5330 line 3b? 2019 None 2020: A: 100% of the 2019 Amount of prohibited transaction reported on 2019 filling $310 B: 100% of the 2019 amount of total prohibited transaction $4,000 + applicable Interest $310: for the total of $4,310? Which would make total excise tax due with 2020 filling of either ($310 + $51.60) = $361.60 or ($4,310+$51.60) = $4,361.60? Thanks for your help!
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An LLC partnership filed it's company taxes by 4/15/2017. One of the partners extended his personal return until 9/15/2017. Originally, when we were given the census information for 2016, the owner stated he would have deferral of $18,000 for 2016. However, we noticed he hasn't yet deposited the contribution. When questioned, owner first said he wouldn't make the contribution, but has now decided he will reflect deferral of $18,000 on his 2016 personal return, and will deposit it by 9/15/2017. Obviously, the deferral is considered late, but should it be declared as a late deposit on the 2016 5500? I am of 2 minds: 1) yes, it should be on the 2016 5500, because it is attributable to the 2016 plan year; 2) no, since the deferral wasn't technically due until 4/15/2017 (date company filed it's return), it won't be on the 2016 5500 as a late contribution, but will be on the 2017 5500 as late. Anyone have a definitive answer, or have an idea of where I can get clarification? -
This must be the month of problems for me Long story short.... A rather large deferral for the owner of a plan sponsor for December 2012 was never deposited in the trust account due to a perfect storm of miscommunication between the payroll company, recordkeeper, and plan sponsor. Deferrals for all other participants were deposited and invested in a timely manner for the month. The deposit still hasn't been made. What is the best course of action to correct this issue? Thanks
