ATM Posted December 13, 2019 Posted December 13, 2019 If you have late deposits in a MEP from several participating employers, who is responsible for the excise tax? The plan sponsor or the individual employers? Anyone know where to find any guidance on this?
C. B. Zeller Posted December 13, 2019 Posted December 13, 2019 The excise tax under sec. 4975 is paid by the disqualified person who participated in a prohibited transaction. The employer who failed to deposit contributions in a timely manner is probably the disqualified person in your scenario, but it will depends on the specifics. Free advice is worth what you paid for it. Do not rely on the information provided in this post for any purpose, including (but not limited to): tax planning, compliance with ERISA or the IRC, investing or other forms of fortune-telling, bird identification, relationship advice, or spiritual guidance. Corey B. Zeller, MSEA, CPC, QPA, QKA Preferred Pension Planning Corp.corey@pppc.co
ATM Posted December 13, 2019 Author Posted December 13, 2019 So would each employer file their own 5330? Or one 5330 filed by the plan sponsor?
C. B. Zeller Posted December 13, 2019 Posted December 13, 2019 If there were multiple disqualified persons, then each one would file their own 5330. Free advice is worth what you paid for it. Do not rely on the information provided in this post for any purpose, including (but not limited to): tax planning, compliance with ERISA or the IRC, investing or other forms of fortune-telling, bird identification, relationship advice, or spiritual guidance. Corey B. Zeller, MSEA, CPC, QPA, QKA Preferred Pension Planning Corp.corey@pppc.co
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