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IRS Form 5330

IRS Form 5330 is used to report and pay taxes for a number of purposes. In connection with 401( k) plans, it is used most often to report the excise tax penalty incurred for failing to timely deposit employee 401( k) deferral contributions.

The excise tax is calculated based on the earnings “missed” by plan participants due to the late deposit of deferrals to their accounts. A late deposit results in a prohibited transaction under the Internal Revenue Code, and excise tax is imposed as a result.

Under federal law, it is the responsibility of the plan sponsor to properly prepare and timely file Forms 5330. 

For information on how to complete and file an IRS Form 5330, please consult with your attorney or other professional tax advisor. Zenefits does not prepare Forms 5330 and does not offer tax advice or any tax preparation services.

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