Leaderboard

I don't know where you are, but in the counties I'm familiar with assessed valuation bears little relationship to fair market value. The plan assets have to be carried at FMV. Showing an incorrect value on a 5500 isn't fatal, but yes it will affect the MRC and 404 DB contribution calculations as well as the AFTAP. And in a pooled DC plan it would affect the value of accounts and distributions (where an incorrect valuation could lead to a qualification failure). And an incorrect value could lead to a qualification failure in a DB distribution, undervalued could result in a 415 violation, overvalued would lead to a benefit being underpaid. Fair. Market. Value.

It looks like it is only an IRA thing, 408(d)(8) (B)Qualified charitable distribution: For purposes of this paragraph, the term “qualified charitable distribution” means any distribution from an individual retirement plan (other than a plan described in subsection (k) or (p))—

I know this was directed at @Bird, but I'll add my thoughts as well. @Bill Presson is correct that money in an account due to an uncashed check is a plan asset. It doesn't matter whether it sits in the plan's account or if the financial institution holds it in a different account until it clears, it is a plan asset. In situations where the check is issued in December and clears in January, or we know that $xx.xx of trailing dividends will hit in January, I have no problem making the accounting work so that liabilities cancel out assets, and we can avoid a new plan year just for the sake of a slow clearing payment or trailing dividends. When those events start taking longer and longer, going in to February, march, or beyond, it loses any nexus it had with the prior plan year. I would not treat a check clearing in March as no plan assets on January 1. I believe it was mentioned in another thread that "client does not want to file a Form 5500 for an additional year". I think we all know that what the client wants to do or does not want to do in regards to reporting and disclosure is irrelevant.

This. It needs to be a a third party appraisal, and it needs to be FMV.

Can they pay a portion of your fees with the residual dividends in January and show it as a payable on the final 2020 form 5500?

There are fee-only advisors who charge too much and commission-based advisors who will do a good job and not "charge" (receive) too much. Granted, it is tough for a layperson to know what is "reasonable" and what is "too much" but I don't subscribe to the mantra that fee-only is always better. It's not unfair to ask exactly how much either party is charging and/or receiving.