delinquent employer contribution

[Guest kmbrown]

Employer with money purchase plan has funding deficiency for 2001. We looked into one of the correction program but this fell trhough the cracks because it wasn't participant contributions that weren't deposited, but employer contributions. So they are paying the 10% penalty on Form 5330. Does this mean they do or don't have to pay the accrued interest from the time that the money was out of the plan? I know the correction plans instruct you to do so but I haven't seen the same instructions anywhere for delinquent employer contributions. A citation would be helpful so that I could follow up.

Also, I am assuming that I need to have the client file amended returns for the deficient year (they had said they made the deposit of the employer contribution). Do they report they made the deposit in 2003?

Just when I understood the correction programs .... along comes this! Thanks in advance.

Kristen