multiple 5330s needed or just 1?

Client had late deferrals in october 2020 that were quickly corrected in November 2020.  I am preparing a Form 5330.  The lost earnings were not posted to the plan until June 2021.

I am preparing the 5330 for 2020.  Do I also have to prepare a 5330 for 2021?  I'm unclear on what triggers multiple filings. In my case only the earnings were deposited in the following year so I'm not sure if that requires an other 5330 for 2021..

thanks!

Yes, the correction was not complete until the earnings posted, so you will file for 2020 and 2021.  Keep in mind the tax is cumulative.

Thank you!  In this case, the deferrals for Oct 2020 were deposited in Nov 2020.  The lost interest was paid in June 2021 and amounted to $34, so the 2020 5330 has a 15% penalty of $5.

For the 2021 5330, Is there another $5 penalty (so $10 due for 2021)?

$5 for 2020 and $10 for 2021?  

When the excise tax is "de minimus", we deposit the amount of the excise tax into the plan, allocated to the effected participants.

This came from an Ask the Experts panel at an ASPPA ABC conference.  It's 10 years old now, but we still do it.

Here is the original discussion: