By Robert Toth on Posted in 403(b),Complex Prohibited TransactionsOne of the continuing confusions in how 401(a) rules apply to 403(b) plan involves the reporting rules related to the correction and reporting on the 5500 of one of the most common errors in any elective deferral plan: the late deposit of those deferrals into the plan. Neither non-ERISA or ERISA 403(b) will ever file a Form 5330. Ever. Even when the VFCP program is being used to correct the late deposit.
Adding to the confusion is that the Form 5500 instructions do not differentiate between 403(b) plans and 401(a) plans. It simply states that all "defined contribution" plans need to file the Form 5330 for late deposits, and pay the penalty tax. … Continue Reading