Completing the Form 5330

[Guest mrtnoc]

I need a bit of help with completing the Form 5330 regarding late deferrals. We have a plan we've taken over a plan where the auditors have determined that several payrolls (going back to 2008 ) were late. The Form 5330 was not done for the prior years so we are trying to catchup.

I have calculated the missing earnings on the applicable payrolls however I need a bit of help correctly reporting this information on the Form 5330.

Here are some of the applicable payrolls. The DOL VFCP calculator was used to calculate the lost earnings and interest.

Loss Date

Recovery Date

Final Payment Date

Amount Due

10/28/2008

1/29/2009

9/30/2011

346.26

1/6/2010

1/21/2010

9/30/2011

40.20

2/24/2011

3/3/2011

9/23/2012

23.79

My 1st thought is that I will need to do a Form 5330 for each tax year (2008, 2009, 2010, 2011, 2012) and report the amount involved each tax year until it is corrected. Meaning that the 10/28/2008 loss of 346.26 would be reported on the 2008, 2009, 2010, and 2011 tax form? If this is the case then they would pay the 15% penalty for each year until the loss is corrected?

Or do I report is once, and then report on Form 5330 Schedule C #5 in the appropriate tax year when it is corrected?

I hope this was clear. Let me know if I need to explain further.

[ESOP Guy]

Your question is a little unclear. But see page 8 of the Form 5330 instructions. From your numbers I can't tell what they are but the 15% excise tax in on just the interest not the full amount of the late def.

It has been a little while but I am pretty sure you have to file a Form 5330 for every year until it is fully corrected. By fully corected that mean all the interest is paid also. So if they just found out about it now and are paying the interest in 2013 you need to file through 2013. I know that one isn't due for a while but you might as well get it out of the way in my mind.

[401QUE]

On the IRS website, I spotted a "Rev.December 2013" Form 5330 today, FYI.. (we were previously using Rev. April 2009). It doesn't look like much has changed upon first glance.