"amount involved" and 401(k) late contributions

[Guest tonjer]

I have read in other threads that for purposes of calculating the 4975 15% excise tax for late contributions, the "amount involved" is the lost earnings. Does anybody have any authority/cite? In my search for some sort of definite cite, all I have came up with is commentary (which all agree with the thread postings). If anybody has a cite, I'd greatly appreciate it.

Thanks

[Guest asire2002]

Look at the regulations under Code Section 4975, which will direct you to other regulations (5978??) that define what the amount involved in.

[E as in ERISA]

The instructions for the Form 5330 also make it fairly clear....

[E as in ERISA]

See also the IRS' new Revenue Ruling at 2002-43, where a disqualified person borrowed money from the plan. They took the money out, instead of putting the money in late -- but the result is the same in that it's a prohibited transaction involving a loan. It just came out and is at http://www.benefitslink.com/IRS/revrul2002-43.pdf

[Guest tonjer]

Thank you very much for all your information