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Item D. Name of plan. Enter the

Defined contribution plans

Part II (Section 4972)

formal name of the plan, group

exception. Employer contributions to

insurance arrangement, or enough

one or more defined contribution plans

Tax on Nondeductible

information to identify the plan. This

that are nondeductible because they

Employer Contributions to

should be the same name indicated on

exceed the combined plan deduction

Qualified Plans

the Form 5500 series return/report filed

limits of section 404(a)(7), are not

for the plan.

subject to the 10% excise tax to the

Section 4972 imposes an excise tax

extent the contributions do not exceed

on employers who make nondeductible

Item E. Plan sponsor’s EIN. Enter the

contributions to their qualified plans. A

the greater of:

nine-digit EIN assigned to the plan

•

“qualified plan” for purposes of this tax

6% of compensation (within the

sponsor. This should be the same

means any plan qualified under section

meaning of section 404(a) and as

number used to file the Form 5500

401(a), any annuity plan qualified under

adjusted under section 404(a)(12)) paid

series return/report.

section 403(a), and any simplified

or accrued (during the tax year in which

employee pension plan qualified under

Item F. Plan year ending. Plan year

the contributions were made) to

section 408(k) or 408(p). The term

means the calendar or fiscal year on

beneficiaries under plans, or

“qualified plan” does not include certain

which the records of the plan are kept.

•

The sum of the amount of

Enter four digits in year-month order.

governmental plans and certain plans

contributions described in sections

maintained by tax-exempt

This number assists the IRS in properly

401(m)(4)(A) and 402(g)(3)(A), or

organizations.

identifying the plan and time period for

•

Contributions to a SIMPLE 401(k) or

which the Form 5330 is being filed. For

The nondeductible contributions are

a SIMPLE IRA that are considered

example, a plan year ended March 31,

computed as of the end of the

nondeductible because they are not

2003, should be shown as 0303.

employer’s tax year. The current year

made in connection with the employer’s

nondeductible contributions are equal

Item G. Plan number. Enter the

trade or business.

to the amount contributed during the

three-digit number that the employer or

The combined plan deduction limits

employer’s tax year over the amount of

plan administrator assigned to the plan.

are first applied to contributions to the

contributions allowable as a deduction

Filer’s signature. Please sign and

defined benefit plan then to defined

under section 404. In addition, prior

date the form. Also enter a daytime

contribution plan.

year nondeductible contributions

phone number where you can be

continue to be subject to this tax

reached.

annually until eliminated by either

Restorative payments to a defined

contribution plan are not considered

distributions to the employer of the

Preparer’s signature. Anyone who

amount of nondeductible contributions,

nondeductible contributions if the

prepares your return and does not

or a carryforward deduction in years

payments are made to restore some or

charge you should not sign your return.

after the nondeductible contributions

all of the plan’s losses due to an action

For example, a regular full-time

are made.

(or a failure to act) that creates a

employee or your business partner who

reasonable risk of liability for breach of

prepares the return should not sign.

Note. Although pre-1987

fiduciary duty. Amounts paid in excess

nondeductible contributions are not

Generally, anyone who is paid to

of the amount of the loss are not

subject to this excise tax, they are

prepare a return must sign it and fill in

considered restorative payments.

taken into account to determine the

the Paid Preparer’s Use Only area.

extent to which post-1986 contributions

are deductible. See section 4972 and

The paid preparer must complete the

Part III (Section 4973(a)(3))

Publication 560, Retirement Plans for

required preparer information and —

•

Small Business, for details.

Sign the return by hand, in the space

Tax on Excess Contributions to

provided for the preparer’s signature

Section 403(b)(7)(A) Custodial

Defined benefit plans exception.

(signature stamps and labels are not

Generally, contributions up to the

Accounts

acceptable).

current unfunded liability of a defined

•

Give a copy of the return to the filer.

Line 14. Reduce total current year

benefit plan are deductible, regardless

contributions by any rollover

of the number of participants in the

Part I

contributions described in sections

plan. In addition, when determining the

403(b)(8) or 408(d)(3)(A).

amount of nondeductible contributions

Lines 12a through 12c. If you are

for any tax year, an employer may

filing an amended Form 5330 and you

Line 15. The amount you will enter on

elect, for that tax year, not to include

paid tax with your original return and

any contributions to a defined benefit

line 15 will depend on whether the

those taxes have the same due date as

excise tax is for a year prior to January

plan except to the extent they exceed

those previously reported, check the

1, 2002 or for a year after December

the full-funding limitation (as defined in

box in item H and enter the tax reported

31, 2001.

section 412(c)(7), determined without

on your original return in the entry

regard to section 412(c)(7)(A)(i)(I)).

space for line 12b. If you file Form 5330

When determining the amount of

for a claim for refund or credit, show the

Years Prior to January 1, 2002

nondeductible contributions, the

amount of overreported tax in

For years prior to January 1, 2002, the

deductible limits under section

parentheses on line 12c. Otherwise,

amount excludable for your tax year is

404(a)(7) must be applied first to

show the amount of additional tax due

the smaller of the maximum exclusion

contributions to defined contribution

on line 12c and include the payment

allowance (MEA) or the limit on annual

plans and then to contributions to

with the amended Form 5330.

additions (annual employer contribution

defined benefit plans. This election

limitation). Figure the amount to enter

Make your check or money order

applies to terminated and ongoing

on line 15 according to the following

payable to the “United States Treasury”

plans. An employer making this election

steps:

for the full amount due. Attach the

cannot also benefit from the exceptions

payment to your return. Write your

for terminating plans and for certain

Step 1. Figure your maximum

name, identifying number, and “Form

contributions to defined contribution

exclusion allowance using Table 1.

5330, Section ____” on your payment.

plans under section 4972(c)(6).

-3-

Instructions For Form 5330 - Return Of Excise Taxes Related To Employee Benefit Plans Page 3

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