Excise Tax

[Guest Benefitsrock]

We have to pay tax on excess aggregrate contributions (we are outside the 2 1/2 month window following the affected plan year). When is the excise tax due? 15 months following the affected plan year? What happens if we pay it later than its due date?

[JanetM]

Section 4979 must be filed by last day of 15th month following the close of plan year to which excess contributions relate. So if the excess was from 12/31/2006 PY you have until 3/31/08.

If you pay late you accrue interest from due date until it is paid. You can file an extension for up to 6 months and hope for approval and estimated tax due with 5558.