Closed MEP Form 5330

[Hunter]

An association of related businesses sponsor a closed MEP. There is one Form 5500 filing that includes the Schedule MEP. I'm not able to find clear guidance on how to file a Form 5330 in a closed MEP situation. Let's say there are several businesses in the MEP that fail to distribute ADP failures timely. Does only 1 Form 5330 get filed with the aggregate of the prohibited amount reported for the excise tax? What about late deposits? 

[Paul I]

Here is my take on the late deposits part of the question dealing with 4975 failure.

Look at the instructions for Form 5330:  https://www.irs.gov/pub/irs-pdf/i5330.pdf

You will see on page 1 under Who Must File
10. A disqualified person liable for the tax under section 4975 for participating in a prohibited transaction (other than a fiduciary acting only as such), or an individual or
the individual’s beneficiary who engages in a prohibited transaction with respect to the individual’s retirement account,

On page 4

3. The association, committee, joint board of trustees, or other similar group of representatives of the parties who establish or maintain the plan, if the plan is established or
maintained jointly by one or more employers and one or more employee organizations, or by two or more employers.

On page 8 under Disqualified Person

3. An employer, any of whose employees are covered by the plan.

Put it all together, and the plan files the 5330.  The individual employers are listed on page 5 as disqualified persons.

As far as the excise tax on late deferrals, this would be taxed under 4979 and I don't see where the individual employer would be listed anywhere on the form 5330.