Brian Gallagher Posted June 10, 2003 Posted June 10, 2003 I have a plan who inadvertanly did not send us a payroll deduction file from December 2002. The company will send it this week. I know it is to be reported on form 5558 which we usually send in along with the 5500. We haven't done the 2002 form for him yet. Sjould that be included in the 2002 5500? The 2003 5500? Can the 5558 be independently filed from the 5500 now? Thanks for your consideration. PS: can somone do something "advertantly"? (just a thought) Remember: two wrongs don't make a right, but three rights make a left.
Guest ElKH Posted June 10, 2003 Posted June 10, 2003 1. They didn't make the deposit or they just didn't provide you with the data? 2. The 5558 is a request to extend the 5500 filing deadline. It has nothing to do with the deposits that went into the plan. If you have all the data you need to file the 5500 within the filing deadline (I assume 7/31), then you don't need to complete a 5558. 3. If your client files on an accrual basis, your December contributions should be included on the 5500. We typically like our 5500 to reconcile to the client's corporate tax return, so we file on an accrual basis.
Brian Gallagher Posted June 10, 2003 Author Posted June 10, 2003 OOOOOPPPPPPSSSS! I meant form 5330! And we neither received the money nor the data. Remember: two wrongs don't make a right, but three rights make a left.
Guest ElKH Posted June 11, 2003 Posted June 11, 2003 You've moved to sticky territory . . . not just filing issues but a VFC issue. At any rate, the deposits belong with 2002 and they belong on the 2002 5500. Any corrective measures that have a financial impact on the plan belong in the year in which they are made - 2003. I'd do a little digging into VFC while I'm at it. You're going to be marking the box that says monies weren't deposited timely (5500 Schedule I / H), and you're paying excise taxes (5330), so you've got all kinds of red flags waving out there. CYA.
Brian Gallagher Posted June 11, 2003 Author Posted June 11, 2003 we do our 5500's on a cash basis. does that matter? (we have a seperate dept. that prepares our 5500 and it's been a long time since i really worked with one) Remember: two wrongs don't make a right, but three rights make a left.
Guest ElKH Posted June 11, 2003 Posted June 11, 2003 Okay, if you're reporting on a cash basis and the money didn't hit until 2003, then it's reported on the 2003 5500. Good luck!
E as in ERISA Posted June 11, 2003 Posted June 11, 2003 It is still a 2002 prohibited transaction, isn't it. You have to answer "Yes" to the question about late deposits. And you should file a 5330. I think that if you follow the VFC's correction method, then you shouldn't have any DOL penalties on those correction amounts -- only additional amounts that might be discovered later?
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