Form 5330 Help

[Guest penman]

Plan year end and fiscal year end is 12/31/04. Plan sponsor could not make the minimum funding requirement for the 2004 plan year (due 9/15/05).

When is the Form 5330 and the 10% excise tax due? The instructions say "7th month after the end of the employer's tax year or 8.5 months after the last day of the plan year that ends with or within the filer's tax year. That means it is due on 9/15/05, the same day as the minimum funding requirement. Is that right?

Then, if you want to extend the 5330, according to the 5558 instructions, you must file a Form 5558 in time for the IRS to act on it before the normal due date of the Form 5330. That means you would have to file the 5558 to extend the 5330 before the due date of the minimum funding requirement that sets this whole process in motion.

I must be missing something because this does not make sense to me.

[JanetM]

Penman you have it right. Didn't the employer know at least a week ahead of time they couldn't make the funding required?

I know for calendar year plans and sponsors it seems odd. But if you have a 12/31 sponsor and a 6/30 plan year end it really does make sense.

The 5558 is due by due date of 5330. It only gives you extension (if approved) to file 5330, not to pay the excise tax. Then of course you will have additional filings of 5330 until the plan meets minimum funding.

[Guest penman]

Thanks.