Get Form 5330 Phone Forum Questions And Answers

Filling Out the Right Forms After remitting the late deposits and making the additional contributions to cover lost earnings, plan sponsors should complete the Internal Revenue Service (IRS) Form 5330 and pay the excise tax—equal to 15 percent of the lost earnings. The excise tax cannot be paid from the plan assets.

An employer or an individual required to file an excise tax return related to employee benefit plans can file Form 5330 electronically. All filers are encouraged to file Form 5330 electronically because it is safe, easy to complete, and you have an immediate record that the return was filed. Paper forms for filing.

If you file late, you may attach a statement to Form 5330 explaining the reasonable cause. Penalty for late payment of tax. If you do not pay the tax when due, you may have to pay a penalty of ½ of 1% of the unpaid tax for each month or part of a month the tax is not paid, up to a maximum of 25% of the unpaid tax.

IRS Form 5330 is a reporting tool commonly used to report excise taxes for 401(k) plans. If plan sponsors delay a 401(k) participant's deposit so it interferes with investments and earnings, they're required to pay an excise tax based on the missing earnings.

This form is used to report and pay the excise tax related to employee benefit plans.

This form is used to report and pay the excise tax related to employee benefit plans.