Failure to meet Top-Heavy contribution requirement

[bzorc]

I just took over a 401(k) plan whose previous administrator notified them (correctly, by the way) that they needed to make a 3% Top-Heavy contribution for the plan year ended 12/31/02. I just got the accounting records for 2003 and the contribution was never made, and the client just verified that it never got done. I have normally treated this as a Form 5330, failure to meet minimum funding, 10% excise tax. It's been so long since I've had a client not meet their contribution requirement that I want to make sure that I report this correctly.

Thanks for any replies.

[Belgarath]

Edited Rev. Proc. number. My magic thumbs managed to type it incorrectly.

I may be all wet here, but I'd say that no 5330 required. A 401(k) plan isn't subject to minimum funding standards. I'd say you just have an operational error, which can be self-corrected under Rev. Proc. 2003-44. Whether you classify it as a "significant" or "insignificant" violation shouldn't matter here, since you are still within the 2-year time limit for "significant" errors.

[Kirk Maldonado]

I agree with Belgarath.

[Tom Poje]

In particular, its Appendix A .02 of Rev Proc 2003-44 (EPCRS)