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Plan Closing 12/31 - Trailing Distributions Trigger 1099-R next year?


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As title suggests, I have a one-person 401(k) Plan that is closing effective 12/31/18.  We are, of course, getting trailing dividends and interest well into January 2019.  Those div/int are about $1100 out of a 1.9MM plan.

Should I:

1) File a 2018 1099-R with the grand total of distribution (once all those div/int have posted, even though those dollars don't technically leave 401(k) Plan until Jan 2019)?  Or ,

2) File a 2018 1099-R for the total rolled out as of 12/31 and then don't file another 1099-R for 2019 (because those div/int amounts are so de minimus)?  Or,

3) File a 2018 1099-R for the total rolled out as of 12/31 and then a 2nd one for 2019 for those trailing div/int?

Then, the follow-up related question is about a Final 5500!  I do not want my client to have to pay me to complete a 2019 5500 just to report the distribution of those pesky dividends & interest!  The amounts are SOOOO low, relatively speaking.  If I file a Final 5500 for 2018, I should show the distributed amount as the same amount shown on the 2018 1099-R, right?

 

Sorry this is so long.  I searched for the answer before posting this, but cannot find anything relevant (maybe I'm not great at searching).  Thanks so much for anyone's help.

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My answer might depend on my mood and/or the client but I think most of the time I would show the trailing dividends as accrued (i.e. assets) on the financials for 2018 and likewise show the remaining distributions as accrued.  In other words treat everything as paid in 2018, file a final return, and move on.  Same with the 1099-R which would tie into the financials showing everything paid in 2018 (your Option 1).

Ed Snyder

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