Form 5330 May Be Filed Via Paper or Electronically for 2023, 2024

On July 12, 2004, the IRS announced on its website website and in an “Employee Plan News” release dated July 17, 2024 that, due to the current lack of authorized e-file providers, plan sponsors will be permitted to file Form 5330 via paper or electronically for the 2023 and 2024 taxable years.

Previous guidance had specified that plan sponsors must file Form 5330 electronically for taxable years ending on or after December 31, 2023, if the sponsor is required to file at least ten returns of any type during the calendar year that the Form 5330 is due.

Presently, the new guidelines do not apply to taxable years beyond 2024.

What is Form 5330 Anyway?

• Form 5330, “Return of Excise Taxes Related to Employee Benefit Plans,” is used to report excise taxes on a wide variety of taxable situations that apply to various employee benefit plans, including 401(k) plans.

• The circumstances most likely to apply to a 401(k) plan include:
  • Reporting the Internal Revenue Code (IRC) Section 4975 tax on prohibited transactions for late deposit of employee plan contributions and/or loan repayments; or
  • Reporting the IRC Section 4979 tax on excess contributions (if corrective distributions are made after the 2 ½ month deadline).
• Form 5330 and payment of the excise tax for late deposit of employee plan contributions and/or loan repayments is generally due by the last day of the seventh month after the end of the sponsoring employer’s tax year.
• Form 5330 and payment of the excise tax for excess contributions not timely corrected is generally due by the last day of the fifteenth month after the end of the year to which the corrective distributions relate.
• The filing requirements for Form 5330 are further described in materials available on the Dashboard.

So, What Do I Do Now?

For the 2023 and 2024 tax years only, plan sponsors needing to file Form 5330 may choose to do so either electronically or via paper.

To file electronically, use the IRS Modernized eFile (MeF) System through the authorized provider available here. (Currently, the sole provider is ProfitDevelopers, Inc – DBA SAXTAX.)

For sponsors choosing to file via paper, the official IRS printed Form 5330 can be located on the IRS website and downloaded to a computer to print and sign (be sure to follow the printed instructions instructions!). The completed, signed form should be sent via U.S. mail to the following address:

Department of Treasury
Internal Revenue Service Center
Ogden, UT  84201

Important!

Sponsors filing Form 5330 via paper are instructed to document that the reason for not filing electronically is the lack of authorized e-vendors.

This article not meant to offer a detailed analysis of the filing, administrative or legal requirements applicable to 401(k) plans or other types of retirement plans (such as defined benefit plans, governmental plans, individual retirement accounts or 403(b) plans). As always, be sure to consult with your own ERISA attorney or other professional advisor for individualized advice with respect to your plan’s unique situation.