Late Top Heavy Minimum Contributions

If an employer fails to deposit a top heavy minimum contribution for a prior year, should form 5330 be filed and an excise tax paid.  If so, it appears it would be shown as a prohibited transaction similar to late deposit of employee deferrals rather than a late required employer contribution under minimum funding standards.

Compliance with top heavy rules is a qualification requirement. It should be corrected under EPCRS.

it is not a pt

So, are you saying there would be no excise tax?

that is correct, no excise tax

I suppose, depending on how many people were missed, how long ago, etc, that it is possible you have to go through VCP rather than simply self correct, but still no excise tax.

it depends on whether the problem is considered significant or insignificant....

I have seen attorneys argue for a treatment of the transaction as a simultaneous emloyer contribution and loan to the employer.  If somebody takes that position there is indeed a pt, with excise taxes.

Mike, if there is enough money involved to make it worthwhile, I'll take that one on a contingency.