Instructions For Form 5330 printable pdf download

Department of the Treasury

Instructions for Form 5330

Internal Revenue Service

(Rev. March 2002)

For use with Form 5330 (Rev. August 1998)

Return of Excise Taxes

Related to Employee Benefit Plans

Section references are to the Internal Revenue Code unless otherwise noted.

2. Any employer who is liable for the tax

A Form 5330 and tax payment is

General Instructions

under section 4971(f) for a failure to meet

required:

•

the liquidity requirement of section

For each year that you fail to meet the

Changes To Note

412(m)(5);

minimum funding standards under section

•

3. Any employer who is liable for the tax

412 or contribute an excess amount to your

All Form 5330 submissions must be filed

under section 4972 for nondeductible

section 403(b)(7)(A) custodial account,

with the Internal Revenue Service Center in

•

contributions to qualified plans;

For each year that any of the items in 2 or

Ogden, Utah (see Where To File on page

4. Any individual who is liable for the tax

3 or 5 through 10 or 12 above apply,

2).

•

under section 4973(a)(3) because an

For a reversion of plan assets from a

Section 659 of the Economic Growth and

excess contribution to a section 403(b)(7)(A)

qualified plan that is taxable under section

Tax Relief Reconciliation Act of 2001

custodial account was made for them and

4980, or

(EGTRRA) added section 4980F, which

•

that excess has not been eliminated as

For each year (or part of a year) in the

imposes on an employer (or, the plan in the

specified in sections 4973(c)(2)(A) and (B);

“taxable period” applicable to a prohibited

case of a multiemployer plan) an excise tax

5. Any disqualified person who is liable

transaction. See the instructions for Part VII,

of $100 per omitted participant or alternate

for the tax under section 4975 for

line 26b, column (c), for a definition of

payee for each day of the noncompliance

participating in a prohibited transaction

taxable period.

period for the failure to give notice of plan

(other than a fiduciary acting only as such),

amendments that provide for a significant

Definitions

or an individual (or his or her beneficiary)

reduction in the rate of future benefit accrual

who engages in a prohibited transaction with

or the elimination or significant reduction of

Plan. For purposes of prohibited

respect to his or her individual retirement

an early retirement benefit or

transactions (section 4975), the term “plan”

account for each tax year or part of a tax

retirement-type subsidy. This notice is called

means any of the following:

•

year in the “taxable period” applicable to

a ‘‘Section 204(h) Notice’’.

A trust described in section 401(a) that

such prohibited transaction;

forms part of a plan;

Until the Form 5330 is revised to reflect

•

6. Any employer who is liable for the tax

A plan described in section 403(a), and

the new tax, filers should enter on line 10

under section 4976 for maintaining a funded

that trust or plan is exempt from tax under

the relevant information for paying the tax

welfare benefit plan that provides a

section 501(a);

under section 4980F. See the instructions

•

disqualified benefit during any tax year;

An individual retirement account

for line 10 on page 3 for information to be

7. Any employer who pays excess fringe

described in section 408(a);

included.

•

benefits and has elected to be taxed under

An individual retirement annuity described

Purpose of Form

section 4977 on such payments;

in section 408(b);

•

8. Any employer or worker-owned

An Archer MSA described in section

File Form 5330 to report the tax on: (a) a

cooperative (as defined in section

220(d);

minimum funding deficiency (section 4971);

•

1042(c)(2)) that maintains an ESOP that

A Coverdale education savings account

(b) nondeductible contributions to qualified

disposes of the qualified securities (as

described in section 530.

plans (section 4972); (c) excess

•

defined in section 1042(c)(1)) or section 133

A trust described in section 501(c)(22).

contributions to a section 403(b)(7)(A)

securities within the specified 3-year period.

custodial account (section 4973(a)(3)); (d) a

Note. If the IRS determined at any time that

See the instructions for Part V for details on

prohibited transaction (section 4975); (e) a

your plan was a “plan” as defined above, it

the excise tax under sections 4978, 4978A,

disqualified benefit provided by funded

will always remain subject to the excise tax

and 4978B;

welfare plans (section 4976); (f) excess

on prohibited transactions (section 4975).

9. Any employer who is liable for the tax

fringe benefits (section 4977); (g) certain

This also applies to the tax on minimum

under section 4979 on excess contributions

ESOP dispositions (sections 4978, 4978A,

funding deficiencies (section 4971).

to plans with a cash or deferred

and 4978B); (h) excess contributions to

Section 4979 applies to plans described

arrangement, etc.;

plans with cash or deferred arrangements

in sections 401(a), 403(a), 403(b), 408(k), or

10. Any employer or worker-owned

(section 4979); (i) certain prohibited

501(c)(18).

cooperative that made the written statement

allocations of qualified securities by an

described in section 664(g)(1)(E) or

Plan sponsor. The term “plan sponsor”

ESOP (section 4979A); (j) reversions of

1042(b)(3)(B) and made an allocation

means:

qualified plan assets to employers (section

prohibited under section 409(n) of qualified

1. The employer, for an employee

4980); (k) a failure to pay liquidity shortfall

securities of an ESOP taxable under section

benefit plan that a single employer

(section 4971(f)); (l) a failure of applicable

4979A or any employer or worker-owned

establishes or maintains;

plans reducing future benefit accruals to

cooperative who made an allocation of S

2. The employee organization in the

satisfy notice requirements (section 4980F).

corporation stock of an ESOP prohibited

case of a plan of an employee organization;

Who Must File

under section 409(p) taxable under section

4979A; or

3. The association, committee, joint

A Form 5330 must be filed by:

11. Any employer who receives an

board of trustees, or other similar group of

1. Any employer who is liable for the tax

employer reversion from a deferred

representatives of the parties who establish

under section 4971 for failure to meet the

compensation plan that is taxable under

or maintain the plan, if the plan is

minimum funding standards under section

section 4980.

established or maintained jointly by one or

412 (liability for tax in the case of an

12. Any employer or multiemployer plan

more employers and one or more employee

employer who is a party to a collective

liable for the tax under section 4980F for

organizations, or by two or more employers.

bargaining agreement, see section

failure to give notice of a significant

413(b)(6));

reduction in the rate of future benefit

accrual.

Cat. No. 11871X

Instructions For Form 5330

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