Instructions For Form 5330 - Return Of Excise Taxes Related To Employee Benefit Plans
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9Department of the Treasury
Instructions for Form 5330
Internal Revenue Service
(Rev. October 2003)
Return of Excise Taxes
Related to Employee Benefit Plans
Section references are to the Internal Revenue Code unless otherwise noted.
•
Certain prohibited allocations of
(as defined in section 1042(c)(1)) or
General Instructions
qualified securities by an ESOP
section 133 securities within the
(section 4979A).
specified 3-year period. See the
•
Changes to Note
instructions for Part V for details on the
Reversions of qualified plan assets to
•
employers (section 4980).
excise tax under sections 4978, 4978A,
Certain restorative payments to a
•
A failure to pay liquidity shortfall
and 4978B.
defined contribution plan are not
9. Any employer who is liable for the
(section 4971(f)).
considered nondeductible contributions
•
tax under section 4979 on excess
A failure of applicable plans reducing
under IRC 4972. See Revenue Ruling
future benefit accruals to satisfy notice
contributions to plans with a cash or
2002-45, 2002-29 I.R.B. 116.
•
deferred arrangement, etc.
requirements (section 4980F).
For years beginning after December
10. Any employer or worker-owned
31, 2001, the Economic Growth and
Who Must File
cooperative that made the written
Tax Relief Reconciliation Act of 2001
statement described in section
(EGTRRA), has made several changes
A Form 5330 must be filed by:
664(g)(1)(E) or 1042(b)(3)(B) and made
to the calculation of the maximum
1. Any employer who is liable for the
an allocation prohibited under section
amount that can be contributed to a
tax under section 4971 for failure to
409(n) of qualified securities of an
403(b) account. Specifically, EGTRRA
meet the minimum funding standards
ESOP taxable under section 4979A or
repealed the maximum exclusion
under section 412 (liability for tax in the
any employer or worker-owned
allowance (MEA) and the alternative
case of an employer who is a party to a
cooperative who made an allocation of
limits available to employees of certain
collective bargaining agreement, see
S corporation stock of an ESOP
501(c)(3) organizations. EGTRRA also
section 413(b)(6)).
prohibited under section 409(p) taxable
redefined compensation for purposes of
2. Any employer who is liable for the
under section 4979A.
figuring the limit on annual additions for
tax under section 4971(f) for a failure to
11. Any employer who receives an
403(b) plan participants.
meet the liquidity requirement of section
•
employer reversion from a deferred
If a defined benefit plan is terminated
412(m)(5).
compensation plan that is taxable under
and an amount in excess of 25% of the
3. Any employer who is liable for the
section 4980.
maximum amount otherwise available
tax under section 4972 for
12. Any employer or multiemployer
for reversion is transferred to a defined
nondeductible contributions to qualified
plan liable for the tax under section
contribution plan, the amount
plans.
4980F for failure to give notice of a
transferred is not treated as an
4. Any individual who is liable for
significant reduction in the rate of future
employer reversion. See Revenue
the tax under section 4973(a)(3)
benefit accrual.
Ruling 2003-85, 2003-32 I.R.B. 291.
because an excess contribution to a
•
Final regulations provide that
A Form 5330 and tax payment is
section 403(b)(7)(A) custodial account
employee organizations that represent
required:
was made for them and that excess
•
applicable individuals must also be
For each year that you fail to meet
has not been eliminated as specified in
notified of plan amendments that could
the minimum funding standards under
sections 4973(c)(2)(A) and (B).
reduce future benefits. See Treas. Reg.
section 412 or contribute an excess
5. Any disqualified person who is
54.4980F-1 Q&A 10.
amount to your section 403(b)(7)(A)
liable for the tax under section 4975 for
custodial account.
participating in a prohibited transaction
•
Purpose of Form
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
such), or an individual (or his or her
File Form 5330 to report the tax on:
apply.
•
beneficiary) who engages in a
A minimum funding deficiency
•
For a reversion of plan assets from a
prohibited transaction with respect to
(section 4971).
qualified plan that is taxable under
•
his or her individual retirement account
Nondeductible contributions to
section 4980.
for each tax year or part of a tax year in
qualified plans (section 4972).
•
For each year (or part of a year) in
the “taxable period” applicable to such
•
Excess contributions to a section
the “taxable period” applicable to a
prohibited transaction.
403(b)(7)(A) custodial account (section
prohibited transaction. See the
6. Any employer who is liable for the
4973(a)(3)).
instructions for Part VII, line 26b,
tax under section 4976 for maintaining
•
A prohibited transaction (section
columns (c) and (d), for a definition of
a funded welfare benefit plan that
4975).
taxable period.
provides a disqualified benefit during
•
A disqualified benefit provided by
any tax year.
When To File
funded welfare plans (section 4976).
7. Any employer who pays excess
•
Excess fringe benefits (section
fringe benefits and has elected to be
Use one Form 5330 to report excise
4977).
taxed under section 4977 on such
taxes with the same filing due date. For
•
Certain ESOP dispositions (sections
payments.
example, many of the excise taxes on
4978, 4978A, and 4978B).
8. Any employer or worker-owned
pages 2 and 3 of the form have the
•
Excess contributions to plans with
cooperative (as defined in section
same filing due dates. One Form 5330
cash or deferred arrangements (section
1042(c)(2)) that maintains an ESOP
may be filed to report one or more of
4979).
that disposes of the qualified securities
these taxes. However, if the taxes are
Cat. No. 11871X
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