Money Purchase Contributions not made

[Guest sugar daddy]

for plan years ending 5/31/07, 5/31/08 and 5/31/09. 2 participant plan. Total 3 year contribution due $34222.82.

Proposed solution:

1) File 5330 and pay 10% excise tax

2) Amend the 2007, 2008 Form 5500's (2009 is on extension)

Am I missing something?

Oh and plan has prepared resolution to terminate.

[BG5150]

VCP since the PYE '07 & '08 are more than 2 years out?

[Guest sugar daddy]

VCP since the PYE '07 & '08 are more than 2 years out?

Your answer was in question format, does that mean you are not sure? So in addition to the 10% excise tax which would run roughly $3500, they would have to pay a VCP filing fee, which I think from memory would run another $750. Correct?

[BG5150]

VCP since the PYE '07 & '08 are more than 2 years out?

Your answer was in question format, does that mean you are not sure? So in addition to the 10% excise tax which would run roughly $3500, they would have to pay a VCP filing fee, which I think from memory would run another $750. Correct?

It did mean I wasn't sure.

[Kevin C]

You said money purchase plan, so I think you are missing step 3) correct the funding deficiency.

The VCP filing fee could be more if the IRS decides it's an egregious or intentional failure. See Rev. Proc. 2008-50, Section 12.06.

[Guest sugar daddy]

You said money purchase plan, so I think you are missing step 3) correct the funding deficiency.

The VCP filing fee could be more if the IRS decides it's an egregious or intentional failure. See Rev. Proc. 2008-50, Section 12.06.

You are correct. Of course they would have to fund the required amount. Thanks