late deposits and form 5330

[eilano]

A Form 5330 should be completed for late salary deferrals. Since the deferrals need to be listed on the Schedule I, what should be done if 5 deposits were late a few days. Total interest due would be approx 10.00. Penalty is 10% or $1.00. Since the Schedule I was already flagged that deposits were late, wouldn't the IRS be looking for form 5330 even though the penalty is basically DeMinimis?

[austin3515]

If you answe that question on Schedule I as yes, you need to compelte both a Schedule G and a 5330. The DOL could easily catch you for not filing a schedule G, because its in the same form. It would take a little more effort for the IRS to catch you for not doing a 5330, but it would certainly not be hard for the IRS to get the information if they wanted it.

Also, based on the reading of the new 5500 instructions it sounds like what would be included on Schedule I is the aggregate amount of deferrals - not the interest. So if your late deferrals each month were $100 and the poblem was for 5 months, the total on Sch. I would be $500, even though the prohibitted transaction reported on G and the 5330 would be $10.

By the way, the penalty is 15% - You just lost $.50!