5330 related for lost earnings on late 401k deferral deposit - is there a minimum?

Hi

I just did the calculations and the participant gets $3.25. They will make the deposit into the account for late deposits.

@15%, the penalty is 49 cents.

Is there any requirement to file 5330?

This seems so ridiculous.

There is no minimum and it's quite ridiculous.

Thank you Bill, hope all is well.

I just prepared Form 5330, where the penalty is less than the cost of the stamp. I agree, it is ridiculous. How must will it cost the IRS employee to process a payment of 19 cents!

This is pretty old now, but if the excise tax is de minimis, we still add it to the lost earnings and give it to the effected participants.