Is a 5330 Necessary If Late Deposit of Deferrals Is Corrected Under VFC?

[Übernerd]

If a late deposit of elective deferrals is corrected under VFCP, the employer qualifies for PTE 2002-51 (as amended), and the 15% § 4975©(2) excise tax is waived. It seems like there is no need to file Form 5330 at this point, but I'm getting pushback on that decision. If there is no excise tax, why go to the trouble and expense of filing the 5330?

Thanks for any wisdom. Cheers.

[PensionPro]

I don't see the point of sending a 5330 showing an excise tax due and no check attached.

[Jim Chad]

I believe the 5330 is note filed in the usual way. it is just filled out to show the calculation and sent in with the stack of paper as a VFCP filing.

[Übernerd]

Thanks. I talked to an agent at the DOL and they confirm that the 5300 need not be filed with the IRS but can be filed as part of the paperwork substantiating an application for the PTE 2002-51 relief.

[PensionPro]

A 5330 (or the information that would be on the 5330) is only required to be submitted to DOL if you are seeking exemption from providing the Notice to Interested Parties where excise tax is less than $100. Otherwise it is not required.

[John Feldt ERPA CPC QPA]

So, to get that exemption then, it must be for late deferral deposits, the excise tax must be contributed to the plan, the 5330 must go to the DOL with the VFCP application, and the excise tax must be under $100.

[Übernerd]

Correct, it's not required in other situations, but the agent said it's helpful to have the 5300 worksheet completed. I was sure that was the answer but I was getting pushback from a "consultant."

[TPApril]

Circumstances: Plan Sponsor has been contacted by DOL re 2012 5500 for delinquient contributions which included 2011 late deposits with lost interest deposited in 2012 and one 2012 late deposit with lost interest deposited in 2014. Excise tax for all is well below $100. In line with VFCP, 5330 will be included with submission, though not formally filed.

Question:Any thought on best practice - include with submission only 2012 5330 in line with relevant 5500 under inquiry, or include 2011-2012, or include 2011-2014?

[jim241]

As follow up on this thread, if a plan sponsor qualifies for the PTE under 2002-51 but the excise tax is above $100, notice is required to be sent to affected participants. What happens to the excise $$ amount? Paid to the plan still? File 5330 with excise amount paid to the IRS? Amount in question is above $100 but below $150, still not a very large amount.