Reporting PS Contribution on Sched. I and 5500

[Guest BarryK]

I am new to form 5500 and have a basic question. The client's plan and fiscal years run from 1/1/03 to 12/31/03. The client deposited his '03 PS contribution on February '04 and took the deduction on his 2003 tax return. None of the 2003 YE supporting materials provided by the DFE account for this PS contribution b/c of its date of deposit. For Form 5500 and Sched. I, would I simply add the '03 PS contribution to the 2003 YE trust total or would I just report the amount when I file the 2004 5500?

[Tom Poje]

the instructions on the form for line 2a say 'contributions received or receivable' so normally you would include it

but you could do things on a cash basis as opposed to accrual basis.

the portion of the SAR which contains the info to avoid the independent audit (if my brain is functioning) would only include the actual amount at the investment

[Guest BarryK]

Thanks for your help. To avoid the independent audit and remain consistent with the DFE's trust accounting records, I'll report the '03 PS contribution on the '04 form 5500.

[Blinky the 3-eyed Fish]

You have to be consistent in the method of reporting. If this is not a new plan, then determine what was done in prior years and do the same again.

Barry, you definitely did not understand what Tom was saying about the independent audit and I won't go into detail, but I will say that whether you report on a cash or accrual basis will not cause an audit.