5500 Form / Contributions rec'd after PYE

[Jean]

A calendar year 401k plan receives a profit sharing and match contribution after 12/31. If 5500 prepared under cash method is this contribution reported on 1998 form, or in the year received? Does it make any difference if this is a first year filing?

[Chester]

The 5500 form should always be prepared under the accrual method for accounting and not the cash method. If this is a first year filing, you are required to file a 5500-C for if you have a plan with less than 100 participants. You will see on the form that there is a field for receivable contributions for the financial asset reporting. You would report these contributions in those fields.

[Guest GG]

If you are filing Form 5500-C/R, the instructions for Lines 27 and 28 permit "either the cash, modified accural or accrual basis for recognition of transactions on lines 27 and 28 as long as you use one method consistently."

For Form 5500, the instructions for Lines 31 and 32 read the same.