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5330 for late deposits question


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If the plan made the interest payments for late deferrals from 2017, '18 and '19 in 2020, do I still need to do a 5330 for all those years?  Or just 2020?

QKA, QPA, CPC, ERPA

Two wrongs don't make a right, but three rights make a left.

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On 4/28/2020 at 2:13 PM, BG5150 said:

If the plan made the interest payments for late deferrals from 2017, '18 and '19 in 2020, do I still need to do a 5330 for all those years?  Or just 2020?

Its been a while since I have done one, but you can do one Form 5330. 

Use 2020 Form 5330

On description of PT put something like "late deposit of employee contributions - see attached summary.  Noe: Value in column (d) is cumulative for 2017-2020"

Attach a summary for all years.

 

 

 

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I have another question.  This is from the DOL closing letter:

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1. a first level tax equal to 15 percent of the amount involved in the transaction for each taxable year during which the transaction is outstanding, and

2. a second level tax, equal to 100 percent of the amount involved if the transaction is not corrected.

 

Say for 2017 the amount involved is $100.  Interest paid 2020.  The excise tax will be $15 x 4 = $60 because there were 4 taxable years it was outstanding.  

However, do I owe another $300 for the tax years it wasn't corrected per item #2?

QKA, QPA, CPC, ERPA

Two wrongs don't make a right, but three rights make a left.

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