Buckoosier Posted January 9, 2015 Posted January 9, 2015 If a 401(k) plan has late salary deferrals and makes a deposit of lost earnings to the plan, but does not file a form 5330 to pay the excise tax, what are apt to be the consequences to the plan sponsor?
Lou S. Posted January 9, 2015 Posted January 9, 2015 Audit case or non audit case? Many late deposits or just a "few"? Large amounts involved or not? The reality is the magnitude will likely impact whether or not the IRS (and or DOL) pursue any action. If IRS does pursue you'd be looking at the original excise tax plus penalties and interest.
Lou S. Posted January 9, 2015 Posted January 9, 2015 That said, file the form and pay the tax to avoid the hassle.
Buckoosier Posted January 9, 2015 Author Posted January 9, 2015 Thanks. On a related topic, can you always use the DOL online calculator to determine lost earnings?
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