Instructions For Form 5330 - Return Of Excise Taxes Related To Employee Benefit Plans Page 7
ADVERTISEMENT
1
2
3
4
5
6
7
8
9Figure 1. 2002 Example
Part VII — Tax on Prohibited Transactions (section 4975)
b
(a) Date of
(c) Amount involved in
(d) Initial tax on prohibited
Transaction
transaction (see
(b) Description of prohibited transaction
prohibited transaction (see
transaction (multiply each
number
page 6 of the
page 6 of the instructions)
transaction in column (c) by
instructions)
the appropriate rate (see
page 6 of the instructions))
(i)
7 – 1 – 02
Loan
$6,000
$900
(ii)
(iii)
26c. Add amounts in column (d). Enter here and on line 6 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
$900
Figure 2. 2003 Example
Part VII — Tax on Prohibited Transactions (section 4975)
b
(a) Date of
(c) Amount involved in
(d) Initial tax on prohibited
Transaction
transaction (see
(b) Description of prohibited transaction
prohibited transaction (see
transaction (multiply each
number
page 6 of the
page 6 of the instructions)
transaction in column (c) by
instructions)
the appropriate rate (see
page 6 of the instructions))
(i)
7 – 1 – 02
Loan
$6,000
$900
(ii)
1 – 1 – 03
Loan
$12,000
$1,800
(iii)
26c. Add amounts in column (d). Enter here and on line 6 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
$2,700
414(m)), and any other group treated
Part VIII
Part XII (Section 4979)
as a single employer under section
414(o).
Schedule of Other Participating
Tax on Excess Contributions to
Disqualified Persons
Note. When an initial tax is imposed by
Certain Plans
section 4971(a) on an accumulated
If more than one disqualified person
Section 4979. Any employer who
funding deficiency and the accumulated
participated in the same prohibited
maintains a plan described in section
funding deficiency is not corrected
transaction, list on this schedule the
401(a), 403(a), 403(b), 408(k), or
within the tax period, an additional tax
name, address, and the social security
501(c)(18) may be subject to an excise
equal to 100% of the accumulated
number or employer identification
tax on the excess aggregate
funding deficiency to the extent not
number of each disqualified person,
contributions made on behalf of highly
corrected is imposed. A similar rule
other than the disqualified person who
compensated employees. The
applies with respect to the section 4975
files this return.
employer may also be subject to an
excise tax.
excise tax on the excess contributions
Part X (Section 4971)
to a cash or deferred arrangement
Part XI (Section 4977)
connected with the plan.
Tax on Failure To Meet
Tax on Excess Fringe Benefits
The tax is on the excess
Minimum Funding Standards
contributions and the excess aggregate
Line 32. If you made an election to be
Line 30. If your plan has an
contributions made to or on behalf of
taxed under section 4977 to continue
accumulated funding deficiency as
the highly compensated employees (as
your nontaxable fringe benefit policy
defined in section 412(a) (section 418B
defined in section 414(q)).
that was in existence on or after
if this is a multiemployer plan in
January 1, 1984, check the “Yes” box
A highly compensated employee
reorganization), complete line 30.
on line 32a and complete lines 32b
generally is an employee who:
through 32d.
Line 31. Multiply line 30 by the
1. Was a 5-percent owner at any
applicable tax rate shown below and
Line 32c. The excess fringe benefits
time during the year or the preceding
enter the result on line 31.
are figured by subtracting 1% of the
•
year, or,
10% for plans (other than
aggregate compensation paid by you to
2. For the preceding year had
multiemployer plans), or
your employees during the calendar
•
compensation from the employer in
5% for all multiemployer plans.
year that was includable in their gross
excess of a dollar amount for the year
income from the aggregate value of the
Note. Except in the case of a
($90,000 for 2003) and, if the employer
nontaxable fringe benefits under
multiemployer plan, all members of a
so elects, was in the top-paid group for
sections 132(a)(1) and 132(a)(2).
controlled group are jointly and
the preceding year.
severally liable for this tax. A “controlled
group” in this case means a controlled
An employee is in the top-paid group
group of corporations (section 414(b)),
for any year if the employee is in the
a group of trades or businesses under
group consisting of the top 20 percent
common control (section 414(c)), an
of the employees of the employer when
affiliated service group (section
ranked on the basis of compensation
-7-
ADVERTISEMENT
0 votes
Related Articles
Related forms
Related Categories
Parent category: Financial