Instructions For Form 5330 (Rev. 2013) (Page 11 of 13) in pdf

time prescribed under section 432. The

($105,000 for 2008) and, if the employer

4980(d)(1)(A) or (B) for more

tax is equal to the greater of:

so elects, was in the top-paid group for

information.

the preceding year.

The amount of tax imposed under

An “employer reversion” is the

section 4971(a)(2); or

An employee is in the “top-paid

amount of cash and the FMV of property

An amount equal to $1,100,

group” for any year if the employee is in

received, directly or indirectly, by an

multiplied by the number of days in the

the group consisting of the top 20% of

employer from a qualified plan. For

tax year which are included in the period

employees when ranked on the basis of

exceptions to this definition, see section

that begins on the first day of the

compensation paid. An employee (who

4980(c)(2)(B) and section 4980(c)(3).

240-day period that a multiemployer

is not a 5% owner) who has

plan has to adopt a rehabilitation plan

compensation in excess of $105,000 is

A “qualified plan” is:

once it has entered critical status and

not a highly compensated employee if

Any plan meeting the requirements of

that ends on the day that the

the employer elects the top-paid group

section 401(a) or 403(a), other than a

rehabilitation plan is adopted.

limitation and the employee is not a

plan maintained by an employer if that

Liability for this tax is imposed on

member of the top-paid group.

employer has at all times been exempt

each plan sponsor. This excise tax may

from federal income tax; or

The excess contributions subject to

not be waived.

A governmental plan within the

the section 4979 excise tax are equal to

meaning of section 414(d).

the amount by which employer

Schedule G. Tax on

contributions actually paid over to the

Excess Fringe Benefits

Terminated defined benefit plan.

trust exceed the employer contributions

If a defined benefit plan is terminated,

(Section 4977)

that could have been made without

and an amount in excess of 25% of the

violating the special nondiscrimination

If you made an election to be taxed

maximum amount otherwise available

requirements of section 401(k)(3) or

under section 4977 to continue your

for reversion is transferred from the

section 408(k)(6) in the instance of

nontaxable fringe benefit policy that was

terminating defined benefit plan to a

certain SEPs.

in existence on or after January 1, 1984,

defined contribution plan, the amount

check “Yes” on line 1 and complete

The excess aggregate contributions

transferred is not treated as an

lines 2 through 4.

subject to the section 4979 excise tax

employer reversion for purposes of

are equal to the amount by which the

section 4980. However, the amount the

Line 3. Excess fringe benefits are

aggregate matching contributions of the

employer receives is subject to the 20%

calculated by subtracting 1% of the

employer and the employee

excise tax. For additional information,

aggregate compensation paid by you to

contributions (and any qualified

see Rev. Rul. 2003-85, 2003-32 I.R.B.

your employees during the calendar

nonelective contribution or elective

291 at

year that was includable in their gross

contribution taken into account in

ar11.html.

income from the aggregate value of the

computing the contribution percentage

nontaxable fringe benefits under

Lines 1–4. Enter the date of reversion

under section 401(m)) actually made on

sections 132(a)(1) and (2).

on line 1. Enter the reversion amount on

behalf of the highly compensated

line 2a and the applicable excise tax

employees for each plan year exceed

Schedule H. Tax on

rate on line 2b. If you use a tax

the maximum amount of contributions

Excess Contributions To

percentage other than 50% on line 2b,

permitted in the contribution percentage

explain on line 4 why you qualify to use

Certain Plans (Section

computation under

a rate other than 50%.

section 401(m)(2)(A).

4979)

Schedule J. Tax on Failure

However, there is no excise tax

Any employer who maintains a plan

liability if the excess contributions or the

to Provide Notice of

described in section 401(a), 403(a),

excess aggregate contributions and any

403(b), 408(k), or 501(c)(18) may be

Significant Reduction in

income earned on the contributions are

subject to an excise tax on excess

Future Accruals (Section

distributed (or, if forfeitable, forfeited) to

aggregate contributions made on behalf

the participants for whom the excess

4980F)

of highly compensated employees. The

contributions were made within 2

employer may also be subject to an

months after the end of the plan year.

Section 204(h) notice. Section 4980F

excise tax on excess contributions to a

imposes an excise tax on an employer

cash or deferred arrangement

Schedule I. Tax on

(or, in the case of a multiemployer plan,

connected with the plan.

Reversion of Qualified

the plan) for failure to give section

The tax is on the excess

204(h) notice of plan amendments that

Plan Assets to an

contributions and the excess aggregate

provide for a significant reduction in the

Employer (Section 4980)

contributions made to or on behalf of the

rate of future benefit accrual or the

highly compensated employees as

elimination or significant reduction of an

Section 4980 imposes an excise tax on

defined in section 414(q).

early retirement benefit or

an employer reversion of qualified plan

retirement-type subsidy. The tax is $100

assets to an employer. Generally, the

A “highly compensated employee”

per day per each applicable individual

tax is 20% of the amount of the

generally is an employee who:

and each employee organization

employer reversion. The excise tax rate

1. Was a 5-percent owner at any

representing participants who are

increases to 50% if the employer does

time during the year or the preceding

applicable individuals for each day of

not establish or maintain a qualified

year, or

the noncompliance period. This notice

replacement plan following the plan

is called a “section 204(h) notice”

2. For the preceding year had

termination or provide certain pro-rata

because section 204(h) of ERISA has

compensation from the employer in

benefit increases in connection with the

parallel notice requirements.

excess of a dollar amount for the year

plan termination. See section

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Instructions For Form 5330 (Rev. 2013) Page 11

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