Form 5330

[CLE401kGuy]

Any Form 5330 experts out there, I'd love to speak with you regarding some questions I have on how to complete this form... these instructions are pretty intense...

1) A distribution was made in error to a participant in 2010 and repaid in 2011 - A) does this represent a prohibited transaction; if yes, B) do I use the FMV of the distribution made to determine the excise tax; C) - if the distribution to the participant was repaid, but not FIT withholding - is my transaction considered to be ongoing requiring continued 5330 filings until the FIT is recovered and re-deposited?

2) Most of the plan's elective withholding was considered to be paid late years 2006 - 2011 - A) when reporting the late deposits on 5330 can I enter on Sch C Line 2 "various dates" and note the months that had late deposits, indicating a total missed earnings figure for the plan year? If the detail is required can I use an attachment to provide the detail and reference it on Sch C Line 2.

3) Is it best to report the late deposits on one set of 5330's and the distribution made in error on a different 5330 (the instructions seem to request this).

4) For late filings of 5330 dating back several years - best to put them all in one big packet to IRS with a single check covering all excise tax due.

Any help anyone can provide, I'd greatly appreciate it.... Ted Triska 216.771.4242 ext. 209

[ESOP Guy]

The distribution made in error is most likely not a PT. You may have other issues so refer to the recently issued guidence about self corrections in a plan.

I have always done the detail even when there are a large number of late deposits. I have on the form said see attached and then used a spreadsheet to list all the late payments. I used the same lables and basic format as the form. The IRS has never sent an objection back to me. I have only done it a few times and it was a couple of years ago as I now work with only ESOPs. (I was hoping someone who is a little more current with 410(k)s would have answers) I am unaware of any guidence regarding our use of the attachment.

In the end my guess is the IRS wants the money more then any thing else.