Though late deferrals to an ERISA 403(b) plan do need to be reported under the Compliance portion of the Form 5500 Schedule H or Schedule I, Form 5330 cannot be filed-in spite of the silence in the Form 5500 instructions. This is because the Tax Code’s prohibited transaction rules, Section 4975, do not apply to 403(b) plans-even if it is an ERISA 403(b) plan. Form 5330 is only for plans to which 4975 applies.
Continue Reading About Reporting Those Late Deposits to 403(b) Plans…….
403(b) Prohibited transaction
The 403(b) Prohibited Transaction
By Robert Toth on
Posted in 403(b)
I had posted in an earlier blog some of the technical differences between 401(k) plans and 403(b) plans. One of the more striking differences I did NOT mention was that of the Prohibited Transaction.
Assume a successful insurance agent sits on the Board of a mid-sized tax exempt organization with 250 employees, a Board which…