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

[Guest Sieve]

EPCRS is available for a SIMPLE IRA. The user fee generally is different, but the correction for a SIMPLE IRA is supposed to be comparable to those used for a qualified plan.

What is the provision you believe has been violated that would cause there to be a Form 5330 filed and an excise tax paid?

[Santo Gold]

Is there an excise fee on missed employer contributions? I also just found out that now there were missing employee contributions too.

[Guest Sieve]

Excise tax for missed employer contribution applies only to a plan subject to minimum funding standards, and a SIMPLE is not subject to minimum funding.

Missing employee deferals (i.e., not timely transmitted by the employer) are subject to a PT tax (on Form 5330).