Form 5330 - Late ADP Excess But Assets Already Distributed

[jgb44]

For a calendar year plan ADP excess contributions were identified after 3/15, however, when the excess was attempted to be cut it was discovered that the participant had already taken a full distribution of assets due to termination.

Please note: this situation is a single Adopting Employer within a Multiple Employer Plan.

The question is...what is the appropriate recourse particular to the Form 5330 reporting? Do you report the excise tax amount that would have otherwise been distributed if the assets had not already been moved out of the plan? Something else? Thank you in advance for any comments.

[BG5150]

Did the person roll the money over?

[jgb44]

BG5150,

I have a few situations with slightly different flavors, some cash distribution others rollover. Can you comment on both, if outcome is different. I understand that I should reach out to plan sponsor/participant informing them that the excess should have been cut but if the Form 5330 is going to get filed before any action is taken on their part before then, I am wondering how the reporting would be affected.