missed or incorrect employer contributions

[Santo Gold]

This is a SIMPLE IRA plan. I'm being told that the employer has either not made or deposited incorrect amounts into the SIMPLE plan for several years. The employee contributions seem to be fine, this is just for the employer contributions.

Can the employer use an EPCRS program to correct or are those not available to SIMPLE IRAs? Is a 5330 needed, plus excise tax, plus lost earnings, needed as well?

Thanks

[Christine Roberts]

This is a SIMPLE IRA plan. I'm being told that the employer has either not made or deposited incorrect amounts into the SIMPLE plan for several years. The employee contributions seem to be fine, this is just for the employer contributions.

Can the employer use an EPCRS program to correct or are those not available to SIMPLE IRAs? Is a 5330 needed, plus excise tax, plus lost earnings, needed as well?

Thanks

Yes to your questions re EPCRS and earnings - see Revenue Procedure 2008-50, Appendix F, Schedule 4 which is a "streamlined" application for correcting the failure you describe. Excise taxes would ordinarily apply to excess contributions but relief may be available under EPCRS; this is part of the streamlined application.