Instructions For Form 5330 - Return Of Exange Taxes Related To Employee Benefit Plans
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9Department of the Treasury
Instructions for Form 5330
Internal Revenue Service
(Rev. October 2004)
Return of Excise Taxes
Related to Employee Benefit Plans
Section references are to the Internal Revenue Code unless otherwise noted.
statement described in section
Who Must File
General Instructions
664(g)(1)(E) or 1042(b)(3)(B) and made
A Form 5330 must be filed by:
an allocation prohibited under section
What’s New
1. Any employer who is liable for the
409(n) of qualified securities of an
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tax under section 4971 for failure to
ESOP taxable under section 4979A or
For securities in an S corporation,
meet the minimum funding standards
any employer or worker-owned
section 4979A imposes an excise tax
under section 412 (liability for tax in the
cooperative who made an allocation of
on the allocation or the ownership of
case of an employer who is a party to a
S corporation stock of an ESOP
the amount involved in (a) any
collective bargaining agreement, see
prohibited under section 409(p) taxable
transaction where a disqualified person
section 413(b)(6)).
under section 4979A.
owns a synthetic equity in any
2. Any employer who is liable for the
nonallocation year, or (b) any
11. Any employer who receives an
tax under section 4971(f) for a failure to
transaction involving employer
employer reversion from a deferred
securities that violates section 409(p) or
meet the liquidity requirement of section
compensation plan that is taxable under
412(m)(5).
a nonallocation year.
section 4980.
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Under section 409(p)(7), the
3. Any employer who is liable for the
12. Any employer or multiemployer
Secretary of the Treasury may, through
tax under section 4972 for
plan liable for the tax under section
regulations or other guidance of general
nondeductible contributions to qualified
4980F for failure to give notice of a
applicability, provide that a
plans.
significant reduction in the rate of future
nonallocation year occurs in any case,
benefit accrual.
4. Any individual who is liable for
in which the principal purpose of the
the tax under section 4973(a)(3)
ownership structure of an S corporation
because an excess contribution to a
A Form 5330 and tax payment is
constitutes an avoidance or evasion of
section 403(b)(7)(A) custodial account
required:
section 409(p).
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was made for them and that excess
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For each year that you fail to meet
References to section 4978B have
has not been eliminated as specified in
the minimum funding standards under
been deleted.
sections 4973(c)(2)(A) and (B).
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section 412 or contribute an excess
These instructions have been
5. Any disqualified person who is
amount to your section 403(b)(7)(A)
reorganized to be consistent with the
liable for the tax under section 4975 for
custodial account.
revised Form 5330.
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participating in a prohibited transaction
For each year that any of the items in
(other than a fiduciary acting only as
2 or 3, or 5 through 10, or 12 above
Purpose of Form
such), or an individual (or his or her
apply.
File Form 5330 to report the tax on:
beneficiary) who engages in a
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For a reversion of plan assets from a
A minimum funding deficiency
prohibited transaction with respect to
qualified plan that is taxable under
(section 4971).
his or her individual retirement account
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section 4980.
Nondeductible contributions to
for each tax year or part of a tax year in
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For each year (or part of a year) in
qualified plans (section 4972).
the “taxable period” applicable to such
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the “taxable period” applicable to a
Excess contributions to a section
prohibited transaction.
prohibited transaction. See the
403(b)(7)(A) custodial account (section
6. Any employer who is liable for the
instructions for Part IV, line 25b,
4973(a)(3)).
tax under section 4976 for maintaining
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columns (d) and (e), for a definition of
A prohibited transaction (section
a funded welfare benefit plan that
taxable period.
4975).
provides a disqualified benefit during
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A disqualified benefit provided by
any tax year.
When To File
funded welfare plans (section 4976).
7. Any employer who pays excess
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Excess fringe benefits (section
File one Form 5330 to report excise
fringe benefits and has elected to be
4977).
taxes with the same filing due date.
taxed under section 4977 on such
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Certain ESOP dispositions (sections
One Form 5330 may be filed to report
payments.
4978 and 4978A).
one or more of these taxes. However, if
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8. Any employer or worker-owned
Excess contributions to plans with
the taxes are from separate plans, file
cooperative (as defined in section
cash or deferred arrangements (section
separate forms for each plan.
1042(c)(2)) that maintains an ESOP
4979).
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that disposes of the qualified securities
Certain prohibited allocations of
Generally, the filing of a Form 5330
(as defined in section 1042(c)(1)) or
qualified securities by an ESOP
starts the statute of limitations running
section 133 securities within the
(section 4979A).
only with respect to the particular
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specified 3-year period.
Reversions of qualified plan assets to
excise tax(es) reported on that Form
9. Any employer who is liable for the
employers (section 4980).
5330. However, statutes of limitations
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tax under section 4979 on excess
A failure to pay liquidity shortfall
with respect to the prohibited
contributions to plans with a cash or
(section 4971(f)).
transaction excise tax(es) are based on
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deferred arrangement, etc.
A failure of applicable plans reducing
the filing of the applicable Form 5500.
future benefit accruals to satisfy notice
10. Any employer or worker-owned
Use Table 1 to determine the due date
requirements (section 4980F).
cooperative that made the written
of Form 5330.
Cat. No. 11871X
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