5500-EZ lines 10b and 11b

[Guest Noidy]

These should be simple for the pros out there but a couple of questions on 5500-EZ for 2004 for a one-person sole proprietor 401k PSP...

LINE 10b: The instructions say to enter the contributions owed to the plan at the end of the plan year - if the plan year ended 12/31/04 and a contribution of $10,000 was put in let's say March 1, 2005, is it correct that the $10,000 is considered "owed" to the plan and should be included on this line 10b?

LINE 11b: This line is supposed to show "Total Plan Assets at the End of the Year". Assuming that the plan year ended 12/31/04 but just like above a contribution of $10,000 will happen 3/01/05, should Line 11b include the 12/31/04 investment account balance plus the $10,000 March '05 contribution?

The plan doesn't have loans and doesn't have distibutions at this time. Any other suggestions for the 5500-EZ would be very welcome. Thank you.

[Bird]

Yes, include the accrued contribution in the total contribution amount.

To my knowledge, the 5500-EZ instructions don't specify whether you can/should use an accrual or cash basis for reporting. The "regular" 5500 instructions say you can use either, as long as you are consistent, and I would be comfortable extrapolating that to the EZ, so I'd say either way is OK. I always show accrued contributions because that is consistent with any other reporting I would be doing.

FYI, the beginning assets plus net income reported on the form will not necessarily equal the ending assets, since you're not supposed to report unrealized gains/losses.