To register for Relius Education seminars and conferences, please login or register for a new login account before proceeding. For more information, please see the Benefits of a Relius User Login Account. For assistance, please contact Client Services at 800-326-7235, and select Option 6.

Focused Topic 04: Form 5330 for Late Deposit of Deferrals
Presentor: Derrin Watson Recorded Date: 9/24/2013 Duration: 60 Min.

This program was recorded during a live presentation on September 24, 2013.

Form 5330 for Late Deposit of Deferrals
Tuesdays with Derrin and Steve

It’s bad enough that a plan must compute and deposit lost earnings when an employer is late in depositing elective deferrals. But the employer must also prepare and file Form 5330 to report a prohibited transaction penalty tax. The tax itself is frequently less than the time and trouble spent completing the form.

This one-hour program explores the details of 5330 preparation for late deposits, including interest rates, timing, and computations.

Topics include:

  • Filing deadlines
  • Computation of amount involved
  • Interest rate (not DOL calculator)
  • Continuous transaction issues
  • Computations involving multi-year transactions
  • Effect of principal payment without depositing earnings
  • $100 de minimis rule?
  • Consequences of failure to file
  • PTIN requirements

Prerequisites: There are no prerequisites or advance preparation for this program. However, the instructor assumes participants understand the basic mechanics of correcting late deposit of elective deferrals.

Level: Intermediate

Instructional Delivery Method
Group - Internet-Based

Speaker: S. Derrin Watson, J.D., APM
Recipient of ASPPA's 2006 Educator of the Year Award

Objectives: After participating in this program, an attendee should be able to:

  1. Correctly prepare Form 5330 to report a late deposit
  2. Prepare Form 5330 in multi-year situations
  3. Determine whether a plan can avoid filing Form 5330
  4. Calculate excise tax when deferrals and earnings are deposited at different times
  5. Determine the appropriate interest rate for calculating excise tax

Hardware System Requirements: 

  • Windows 95, 98, NT 4.0, 2000, XP, Windows 7
  • Internet Explorer 4.01 or later, Netscape 4.08 or later, and set Internet browser to allow pop-up windows.
  • High-speed Internet connection.
  • Pentium 166+ MHz, 128MB RAM or more.
  • 1023 x 768 or higher display resolution.
  • Soundcard and Speakers.

Software Requirements:

Program related requests, questions, or concerns may be emailed to: