Yr-end testing for unit or share accounting plans

[Alan Simpson]

What I am assuming you wish to do is have the contribution posted to the individual accounts but not perform the investment buys associated with that contribution. This way you have the contributions in the system to perform the necessary testing.

Assume the following:

Plan year is 10/1/97 - 9/30/98.

Employee deferrals for the last month of the plan year are deposited after 9/30/98.

Matching of deferrals for the last month of the plan year are deposited after 9/30/98.

To have the contributions posted to the 9/30/98 plan year without having to perform the associated investment buys you could do the following:

1. Establish an Employee Receivable account and an Employer Receivable account along with the other investment accounts. The account type used for these accounts should be Employee Receivable and Employer Receivable, respectively.

2. To post the contribution, input the Employee Receivable investment in the ACCOUNT # on the contribution transaction input screen, with the same being done for the Employer Receivable contribution. Also select the appropriate contribution type EE-Pre-tax, ER-Pre-Tax Match etc.)

3. Post the transactions as you would normally although this does require the posting of Employee and Employer contributions separately. (The Confirmation Required should not be selected for the posting).

4. The contributions will now show on the participant statements under receivables, have the data in the system for testing, but not require you to actually perform the investment buys.

When you actually do the investment buys for the "receivable contributions" you will perform the following (which should be in the following plan year):

1. Use a Transfer/Exchange transaction, selecting the Transferring Receivables option, to transfer the Employee Receivable account into the Employee Deferral.

2. Use a Transfer/Exchange transaction, selecting the Transferring Receivable" option, to Transferring Receivable to transfer the Employer Receivable account into the Matching.

3. If Confirmation Required for the above two transfer/Exchanges is selected, perform the investment buys as instructed.

[Guest Denise Ledden]

What is the best way to perform testing for a 1998 ERC not received until 1999? I need the ERC in plan year 1998 for testing, but shown as a contribution in 1999.

[Guest Denise Ledden]

What I'm trying to avoid is running the calc twice - once in 1998 for testing, and then in 1999 so participants will see the ERC on their stmts. Maybe the following gives a better picture:

12/31/98 year end

1998 yr-end stmts delivered 1/20/99 without the ERC shown

ERC calc finalized 2/2/99 and shown as a contribution on 3/31/99 stmts

We need the ERC in 1998 for testing, but want the participants to actually see the ERC on their 3/31/99 stmt, not in their BB as would be the case if the receivable was used. In this instance, we have already delivered 12/98 stmts w/o the ERC. We would actually post the ERC to a receivable acct in 1999, mark it to NOT be included for testing in 1999 and then trsf the receivable acct and perform the investment buys. I was hoping someone knew of a better work around than having to post the ERC in both years.

[This message has been edited by Denise Ledden (edited 12-11-98).]

[Guest Denise Ledden]

I wasn't sure if the light was on showing that I had replied above, so I resent this.

Thanks