RTB

Thanks everyone-do I show this as a positive distribution on the forms?

Well... the client did not follow the Plan document as far as making the SH Match, because not all participants received the Match (albeit the ones that didn't were HCEs) and the option for a discretionary SH Match to be given to the HCEs was not in place as far as the Plan document was written. I guess I'm asking what are the consequences to this scenario, and how, if at all, do we solve any issues that may have arisen because of this?

Well... the client did not follow the Plan document as far as making the SH Match, because not all participants received the Match (albeit the ones that didn't were HCEs) and the option for a discretionary SH Match to be given to the HCEs was not in place as far as the Plan document was written. I guess I'm asking what are the consequences to this scenario, and how, if at all, do we solve any issues that may have arisen because of this?

Plan terminated and all assets distributed in December, 2016. I have not filed a 2016 5500SF yet, because in March of 2017, a distribution check was returned and deposited into the Plan's investment account. My question is how do I handle the 2016 return? Do I file a final filing for 2016 and then amend the 2016 return without marking "Final Return" or do I file the 2016 return originally with zero assets, but not marked "Final"?

For 2015 calendar year Plan, my client chose to put the max. away for the HCEs between deferrals, SH Match (enhanced formula) and discretionary PS contribution. They do not pay their ER contributions until September of the following year (9/2016). Also, in anticipation of terminating the Plan on 6/15/2016, they amended the plan to eliminate the SH Match effective 1/1/2016 and all appropriate amendments and notices were given to participants in November, 2015. Ultimately, all assets were distributed prior to 12/31/2016. When it came time for them to make the 2015 ER contribution in September, 2016, they didn't have enough money to contribute for themselves, so they just funded the SH Match and PS discretionary contributions for the NHCEs ONLY, and not themselves (I advised against this, so it was their decision, not mine!) The 2015 5500SF and Corp. tax return were both filed using the reduced deduction for contributions made to the NHCEs only. How do I solve this? They now have contacted an attorney to "tie up loose ends" for the company, and it seems they are looking to somehow pin me to the wall for it! Thanks for any help!!!