Instructions For Form 5330 (Rev. 2013) (Page 6 of 13) in pdf

transaction specifically identified by the

For purposes of section 4972,

matching contributions described in

Secretary as a tax avoidance

“nondeductible contributions” for the

section 401(m)(4)(A).

transaction for purposes of section

employer's current tax year are the sum

Contributions to a SIMPLE 401(k) or

6011.

of:

a SIMPLE IRA considered

nondeductible because they are not

2. A “prohibited reportable

1. The excess (if any) of the

made in connection with the employer's

transaction” is:

employer's contribution for the tax year

trade or business. However, this

less the amount allowable as a

a. Any confidential transaction

provision pertaining to SIMPLEs does

deduction under section 404 for that

within the meaning of Regulations

not apply to contributions made on

year, and

section 1.6011-4(b)(3), or

behalf of the employer or the employer's

2. The total amount of the

b. Any transaction with contractual

family.

employer's contributions for each

protection within the meaning of

For purposes of this exception, the

preceding tax year that was not

Regulations section 1.6011-4(b)(4).

combined plan deduction limits are first

allowable as a deduction under section

applied to contributions to the defined

Part II. Tax Due

404 for such preceding year, reduced

benefit plan and then to the defined

by the sum of:

contribution plan.

If you are filing an amended

a. The portion of that amount

Form 5330 and you paid taxes

Restorative payments to a defined

available for return under the applicable

with your original return and

contribution plan are not considered

qualification rules and actually returned

those taxes have the same due date as

nondeductible contributions if the

to the employer prior to the close of the

those previously reported, check the

payments are made to restore some or

current tax year, and

box in item H and enter the tax reported

all of the plan's losses due to an action

b. The portion of such amount that

on your original return in the entry space

(or a failure to act) that creates a

became deductible for a preceding tax

for line 18. If you file Form 5330 for a

reasonable risk of liability for breach of

year or for the current tax year.

claim for refund or credit, show the

fiduciary duty. Amounts paid in excess

amount of overreported tax in

of the loss are not considered

Although pre-1987 nondeductible

parentheses on line 19. Otherwise,

restorative payments.

contributions are not subject to this

show the amount of additional tax due

excise tax, they are taken into account

For these purposes, multiemployer

on line 19 and include the payment with

to determine the extent to which

plans are not taken into consideration in

the amended Form 5330.

post-1986 contributions are deductible.

applying the overall limit on deductions

See section 4972 and Pub. 560,

where there is a combination of defined

Lines 17–19. Make your check or

Retirement Plans for Small Business, for

benefit and defined contribution plans.

money order payable to the “United

details.

States Treasury” for the full amount due.

Schedule B. Tax on

Defined benefit plans exception.

Attach the payment to your return. Write

Excess Contributions to

For purposes of determining the amount

your name, identifying number, plan

Section 403(b)(7)(A)

of nondeductible contributions subject

number, and “Form 5330, Section ____”

to the 10% excise tax, the employer

on your payment.

Custodial Accounts

may elect not to include any

File at the address shown under

(Section 4973(a)(3))

contributions to a defined benefit plan

Where To File, earlier.

except, in the case of a multiemployer

Section 4973(a) imposes a 6% excise

plan, to the extent those contributions

Schedule A. Tax on

tax on excess contributions to section

exceed the full-funding limitation (as

403(b)(7)(A) custodial accounts at the

Nondeductible Employer

defined in section 431(c)(6)). This

close of the tax year. The tax is paid by

Contributions to Qualified

election applies to terminated and

the individual account holder.

ongoing plans. An employer making this

Employer Plans (Section

Line 1. Enter total current year

election cannot also benefit from the

4972)

contributions, less any rollover

exceptions for terminating plans and for

contributions described in sections

certain contributions to defined

Section 4972. Section 4972 imposes

403(b)(8) or 408(d)(3)(A).

contribution plans under section 4972(c)

an excise tax on employers who make

(6). When determining the amount of

Line 2. Enter the amount excludable

nondeductible contributions to their

nondeductible contributions, the

under section 415(c) (limit on annual

qualified plans. The excise tax is equal

deductible limits under section 404(a)(7)

additions).

to 10% of the nondeductible

must be applied first to contributions to

contributions in the plan as of the end of

To determine the amount

defined contribution plans and then to

the employer's tax year.

excludable for a specific year,

contributions to defined benefit plans.

TIP

A “qualified employer plan” for

see Pub. 571, Tax-Sheltered

purposes of this section means any plan

Defined contribution plans

Annuity Plans (403(b) Plans), for that

qualified under section 401(a), any

exception. In determining the amount

year.

annuity plan qualified under section

of nondeductible contributions subject

403(a), and any simplified employee

to the 10% excise tax, do not include

The limit on annual additions under

pension plan qualified under section

any of the following.

section 415(c)(1)(A) is subject to

408(k) or any simple retirement account

Employer contributions to one or

cost-of-living adjustments as described

under section 408(p). The term qualified

more defined contribution plans which

in section 415(d). The dollar limit for a

plan does not include certain

are nondeductible solely because of

calendar year, as adjusted annually, is

governmental plans and certain plans

section 404(a)(7) that do not exceed the

published during the fourth quarter of

maintained by tax-exempt

the prior calendar year in the Internal

organizations.

Revenue Bulletin.

-6-

Instructions For Form 5330 (Rev. 2013) Page 6

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