Instructions For Form 5330 November 2002
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8Department of the Treasury
Instructions for Form 5330
Internal Revenue Service
(Rev. November 2002)
Return of Excise Taxes
Related to Employee Benefit Plans
Section references are to the Internal Revenue Code unless otherwise noted.
(section 4979A); (j) reversions of
instructions for Part V for details on the
General Instructions
qualified plan assets to employers
excise tax under sections 4978, 4978A,
(section 4980); (k) a failure to pay
and 4978B;
Changes To Note
liquidity shortfall (section 4971(f)); (l) a
9. Any employer who is liable for the
•
failure of applicable plans reducing
The Economic Growth and Tax Relief
tax under section 4979 on excess
future benefit accruals to satisfy notice
Reconciliation Act of 2001 (EGTRRA)
contributions to plans with a cash or
requirements (section 4980F).
amended section 4972(c)(6) which
deferred arrangement, etc.;
provides exceptions for determining
10. Any employer or worker-owned
Who Must File
nondeductible contributions of defined
cooperative that made the written
contribution plans.
statement described in section
A Form 5330 must be filed by:
•
EGTRRA added new section
664(g)(1)(E) or 1042(b)(3)(B) and made
1. Any employer who is liable for the
4972(c)(7) which provides an elective
an allocation prohibited under section
tax under section 4971 for failure to
exception for determining
409(n) of qualified securities of an
meet the minimum funding standards
nondeductible contributions to defined
ESOP taxable under section 4979A or
under section 412 (liability for tax in the
benefit plans. Section 4972(c)(7) allows
any employer or worker-owned
case of an employer who is a party to a
employers to elect to not take into
cooperative who made an allocation of
collective bargaining agreement, see
account any contribution to a defined
S corporation stock of an ESOP
section 413(b)(6));
benefit plan except to the extent that
prohibited under section 409(p) taxable
2. Any employer who is liable for the
the contributions exceed the accrued
under section 4979A; or
tax under section 4971(f) for a failure to
liability full funding limitation contained
11. Any employer who receives an
meet the liquidity requirement of section
in section 412(c)(7).
employer reversion from a deferred
412(m)(5);
•
The exemptions to the prohibited
compensation plan that is taxable under
3. Any employer who is liable for the
transaction rules have been expanded
section 4980.
tax under section 4972 for
by EGTRRA to include non-IRA loans
nondeductible contributions to qualified
12. Any employer or multiemployer
to sole proprietors, partners, and S
plans;
plan liable for the tax under section
corporation owners. See section
4. Any individual who is liable for
4980F for failure to give notice of a
4975(f)(6)(B)(iii) for more information.
the tax under section 4973(a)(3)
significant reduction in the rate of future
•
The alternative limitations election for
because an excess contribution to a
benefit accrual.
section 403(b) contracts available to
section 403(b)(7)(A) custodial account
A Form 5330 and tax payment is
employees of an educational
was made for them and that excess
required:
organization, hospital, or home health
has not been eliminated as specified in
•
services agency under section
For each year that you fail to meet
sections 4973(c)(2)(A) and (B);
415(c)(4) has been repealed by
the minimum funding standards under
5. Any disqualified person who is
EGTRRA section 632(a)(3)(E).
section 412 or contribute an excess
liable for the tax under section 4975 for
•
EGTRRA added new section
amount to your section 403(b)(7)(A)
participating in a prohibited transaction
4972(c)(6)(B) which provides that
custodial account,
(other than a fiduciary acting only as
•
nondeductible contributions to qualified
For each year that any of the items in
such), or an individual (or his or her
plans for domestic and similar workers
2 or 3 or 5 through 10 or 12 above
beneficiary) who engages in a
are no longer subject to a 10% excise
apply,
prohibited transaction with respect to
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tax.
For a reversion of plan assets from a
his or her individual retirement account
qualified plan that is taxable under
for each tax year or part of a tax year in
Purpose of Form
section 4980, or
the “taxable period” applicable to such
•
prohibited transaction;
File Form 5330 to report the tax on: (a)
For each year (or part of a year) in
a minimum funding deficiency (section
6. Any employer who is liable for the
the “taxable period” applicable to a
4971); (b) nondeductible contributions
tax under section 4976 for maintaining
prohibited transaction. See the
to qualified plans (section 4972); (c)
a funded welfare benefit plan that
instructions for Part VII, line 26b,
excess contributions to a section
provides a disqualified benefit during
column (c), for a definition of taxable
403(b)(7)(A) custodial account (section
any tax year;
period.
4973(a)(3)); (d) a prohibited transaction
7. Any employer who pays excess
(section 4975); (e) a disqualified benefit
fringe benefits and has elected to be
Definitions
provided by funded welfare plans
taxed under section 4977 on such
Plan. For purposes of prohibited
(section 4976); (f) excess fringe
payments;
transactions (section 4975), the term
benefits (section 4977); (g) certain
8. Any employer or worker-owned
“plan” means any of the following:
ESOP dispositions (sections 4978,
cooperative (as defined in section
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A trust described in section 401(a)
4978A, and 4978B); (h) excess
1042(c)(2)) that maintains an ESOP
that forms part of a plan;
contributions to plans with cash or
that disposes of the qualified securities
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deferred arrangements (section 4979);
(as defined in section 1042(c)(1)) or
A plan described in section 403(a),
(i) certain prohibited allocations of
section 133 securities within the
and that trust or plan is exempt from tax
qualified securities by an ESOP
specified 3-year period. See the
under section 501(a);
Cat. No. 11871X
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