Editor's Note: This is the eighth installment in a series concerning correcting plan loan failures.
Q. Could an employer deposit the 15% excise tax to participants in the plan rather than send a tiny check to IRS?
A. If you file under the Department of Labor’s Voluntary Fiduciary Correction Program and satisfy the requirements for paying the excise tax to the plan, the employer can contribute the excise tax to the plan.
Editor’s Note: This content is taken from “Loans: Correcting Taxation, Qualification and Fiduciary Failures,” an April 15, 2020 ASPPA Webinar presented by Stephen W. Forbes J.D., LL.M. of Forbes Retirement Plan Consulting.
Opinions expressed are those of the author, and do not necessarily reflect the views of ASPPA or its members.
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