Schedule B vs. 5500

[JAY21]

Schedule B only reflects contributions made through due date 8.5 mos after plan year end (per IRC 412 and IRS Schedule B instructions).

What about add'l contributions an LLC makes who is on extension through 10/15. Say they made the minimum funding requirement of 80k by 9/15/07, then add an add'l 20k on 10/5/07 under 404 limits. The extra 20k doesn't show on the Schedule B but should it be included on the Form 5500 ??

Thanks for any thoughts.

[Andy the Actuary]

If this were a DC plan, you would record the contribution on 5500 without question. Similarly, why wouldn't you count the DB contribution on Schedule H or I ?

[Mike Preston]

What Andy said.

[tymesup]

...

[Penman2006]

I remember this scenario from studying for the EA exam. My recollection is that you would not show contributions made between 9/16 and 10/15 on the Schedule B. You would show them on the 5500. The regulations provide guidelines on how to adjust the valuation assets for Section 412 and Section 404 for the contribution which was deducted but did not show up on the Schedule B. I did not try to look this up but I think that you just ignore the contribution for 412 assets and include it for 404 assets.

[david rigby]

I agree with Andy. However, I heard exactly the same story about TPF&C when I worked for Hewitt in the late 70's.

[Mike Preston]

Darn, I take an hour break and I miss it!