Schedule I, line 4d question

[Richard Anderson]

The company owner "borrowed" $100,000 from the plan a few years ago. He has been paying 8% interest on the loan to the plan, but no principal payments.

Line 4d of Schedule I asks if during the year were there any nonexempt transactions with a party in interest.

The original transaction occured in a prior year. For excise tax purposes on the prohited transaction, I know each year that it is not corrected it is considered a new loan for calculating the tax.

Would this "loan" be put on line 4d each year until it is corrected, or would it be put on line 4d only in the year that the original tranaction took place.

Thanks.

[WDIK]

I have no citations to back up my understanding, but I believe that for Form 5500 purposes, the transaction is only reported once, in the year that it occurred. As you point out, it will continue to be subject to excise taxes until it has been corrected.