bzorc

As a recordkeeper for law firms, I can say that the majority of firms either offer a match or a firm contribution, or both. Examples: Match 50% up to first 6% of compensation. Match is on a graded vesting schedule Firm contribution from 3 to 5% of comp.

A question has come up during audit season, and that is how to report contributions receivable. I am always of the belief that contributions should be shown on the audit (and 5500) on an accrual basis, but a partner has questioned as to whether or not it could be reported on a cash basis, to tie to actual contributions received by the trust in a Money Purchase plan situation where contributions are funded monthly. That is, the December contribution, received in January of the next year, is shown on next year's 5500, while last years December contribution is shown this year. Any comments would be appreciated. Thanks!