Jump to content

Amended 5500SF?


Susan Graves CPA

Recommended Posts

I have a client with a one-participant 401(k) that has always qualified for the maximum deferral and contributions.  In anticipation of that, in 2019 they made their allowed 2018 contribution and they went ahead and made a $25k contribution towards the 2019 contribution.

After receiving the documents from the investment folks, I filed the 5500-SF timely and included the 2019 $25k as a contribution along with the allowed 2018 contributions.

Well lo and behold, said client, in the process of retiring, didn't qualify for anywhere near the 2019 max contribution, let alone the $25k payment made in 2019- so we had the investment folks remove the $25k + some earnings.  This occurred this past month, in 2020.

Here's my question:  Do I need to amend the 2019 5500-SF that shows the 2019 $25k contribution that was made in 2019 but removed in 2020?  Or do I show a negative contribution on the 2020 5500-SF?

Link to comment
Share on other sites

As far as the 5500 reporting, it sounds like you have been doing cash basis reporting if you included the 2018 contributions made in 2019 as well as the 2019 contribution made in 2019.  That's ok as long as you are consistent.

I think the corrective distribution doesn't show up at all if you are filing as a one-man plan.  

Other questions arise such as whether the distribution, and reporting thereon, was or will be done accurately.  (Was the entire $25K not allowed?  That would mean $0 compensation.)

In our (TPA) world I'd say most or all of us would be doing the tax return as the very last thing, i.e. after calculating contributions, so your question is a bit foreign.  Although I think the 5500 reporting would devolve to the same place.

Ed Snyder

Link to comment
Share on other sites

Create an account or sign in to comment

You need to be a member in order to leave a comment

Create an account

Sign up for a new account in our community. It's easy!

Register a new account

Sign in

Already have an account? Sign in here.

Sign In Now
×
×
  • Create New...