Completing Form 5330

[PLAN MAN]

Trying to help a client out, but I do not have any experience with the Form 5330. What is the correct way to report the interest amounts on multiple late deferral deposits over several years? The client settled with the DOL and was informed to file Form 5330 for the excise tax on the interest on the late deferrals. The interest amounts are very small, a total of $1,250. However, there are 34 separate occurances from 2002-2007. Is it acceptable to list the total on line 25(b) under column (d) on the Form and calculate the 15% excise tax on that amount, or must each occurance be listed separately? Or, a better way?

Please help, I'm clueless about this! Thanks.

[austin3515]

They will not accept "Various" for a date range. But they will accept an attachment.

I once filed using the "Various" and they sent it back.

[Guest Kabert]

The 3 or so times I've done such a filing, I too have submitted a copy of a spreadsheet that spells out all the amounts. The last time I did one though was probably 4 years ago though, so I don't know if the rules have changed since then. Two things to note -- these amounts are reported on the 5500 I believe, and I think the DOL's EBSA website has some kind of calculator to assist in calculating the missed payments (you're probably aware that there's fairly recent guidance from both IRS and DOL on missed contribution issues).

All told, dealing with late contribution issues has to be one of the biggest qualified plan pains relative to the amount of the penalty.

[JanetM]

They give you ten lines for a reason. They want each one spelled out.

[PLAN MAN]

In listing them separately, would you list an occurance for 2002 six separate times - 2002, 2003, 2004, 2005, 2006 and until corrected in 2007, or just once for 2002-2007? Thanks for all your help.

[JanetM]

A PT that is not corrected is treated as a new PT for each tax year. So if your PT started in 2002 heres what I would do. Mark 25a as other than discrete and then in 25b list each year the PT went on, unless you filed 5330 for it already for a prior year. Make sure you use the initail transaction date in 25b section b. In column C is where you clarify the missed years.