15% Excise Tax

[Guest Giovanni]

How is the 15% excise tax, due to a late deposit of salary deferral contributions, computed for purposes of completing Form 5330? Is it computed based on 15% of the late deposit or 15% of the intersest on the late deposit?

[Guest galdridge]

For Form 5330 purposes, the excise tax calculation should be based on the lost earnings amount, not the late deposit amount.

Glenn Aldridge, CPA

Audit Manager

Bennett Thrasher PC

Atlanta, GA