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?
