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Amend 5330 when no corrective distributions paid???


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Posted

We have a plan that did not issue their corrective distributions by 12/31/14 and now a QNEC needs to be made. The option that is being chosen is resulting in no corrective distributions needing to be made (i.e. not the one-to-one correction). Since no corrective distributions are now being made, could the plan now file an amended 5330 and get a refund of the excise taxes that were paid in? If so, has anyone done this? Our thought is this could possibly be an audit flag that may not be worth the risk.

Posted

What is not clear? Plan paid excise taxes on corrective distributions they intended to make before 12/31/14 but never actually submitted the distribution requests to be processed. Now under EPCRS they are making a QNEC to raise the percentage of the NHCEs so no corrective distributions need to be made.

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