Blogging Employee Benefits

July 3, 2006

Excise Tax on Late Deferrals

Filed under: 401(k), Prohibited Transactions — Fuguerre @ 6:58 am

If an employer does not deposit participant deferrals into a 401(k) plan in a timely manner, then the prohibited transaction excise tax under §4975 is based on interest on those elective deferrals. [Rev. Rul. 2006-38]


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