DOL Audit, improper investment, Excise tax 5330

[Guest jc1457]

Hi,

We have a Plan that went through a DOL audit. THe plan had pooled investments. The audit uncovered that for the period from 1994 - 2002, the plan document/ trust agreement did not have the wording to allow the Plan to investment in a "Pooled Common Fund". A small piece of the Plan's assets where invested in this pooled fund. In 2002 the plan document was amended and the wording allowed the trust to invest in pooled funds. So clearly, there was a problem with the investments from 1994 - 2002.

The DOL allowed the Plan Sponsor to retroactively amend the Plan Document to allow pooled funds for the years 1994 - 2002. In it's closing statement, it advised that the Plan file a Form 5330 and pay an excise tax - The investment in the Pooled Common Fund was considered a prohibited transaction.

My question is - for what years should we calculated the excise tax. Does a statue of limitations apply? A Schedule P was always filed. Wouldn't the statue of limitations then have expired for all years where there was a problem.

Thank you so much.