Schedule I

[Guest JohnSB]

We are preparing the 5500 for small 401(k) plan that is on a cash basis and they have an off plan year (Oct - Sept). The plan made their safe harbor contribution of $85,000 for the 2004 PY in the 2005 PY. Their 2005 PY contribution of $93,000 has not been made yet. What number do we use on Schedule I line 2 for Employer contribution for the 2005 PY 5500? $85,000 $93,000 or $178,000?

[WDIK]

The Schedule I instructions for Line 2a indicate the following:

"Include the total cash contributions received and/or (for accrual basis plans) due to be received."

(Edited for poor pasting skills. I always did use too much glue in elementary school.)

[Bird]

i.e. if you are truly doing it on a cash basis use $85,000.

[wsp]

The Schedule I instructions for Line 2a indicate the following:

"Include the total cash contributions received and/or the plan year must be the same as reported for the end of the (for accrual basis plans) due to be received."

I think that was meant to be...

"Include the total cash contributions received and/or (for accrual basis plans) due to be received." (edited...sorry WDIK, didn't want to be ticky tacky but think the extra words made it hard to follow)

Since you said it's cash basis then you'd ignore the 2005 contribution. Make sure though that your 5500 accounting method is consistant with prior years. I've had plans that filed the 5500 on an accrual basis but wanted the rest of plan reporting/participant reporting to be cash basis. If your 2004 5500 filing was cash based then make your 2005 cash based as well.

[JanetM]

The modified cash basis only recognizes the receivables from ER and EE and payables (distributions). Used to be common for small plans to use this form. Look at prior years to see if they used cash, modified cash or accrual and be consistant. Or pick a form and be consistant in the future if you don't like the old way.