5310 completion questions

[Guest bshawnr]

I have been completing 5310's and have some general questions.

1. On 15a, should the Current Plan Year always end with the plan termination date, or current date? I have a plan that terminated 8/31/08. Would I use 8/31/08, 12/31/08, or 12/31/09?

2. Number 18(b) - For each year, do I provide the amount of forfeitures that was forfeited from employees accounts during the year, or do I provide the amount of forfeitures that was reallocated to the participants during the year. Since it is in a section with contributions and rollovers, I would think they want the amount reallocated. However, since the 5310 instructions say "If these forfeitures resulted from a cashout for a year not listed on 15a..." it makes it sound like it wants the amounts actually forfeited from the participants for the year.

3. Number 15a(6) - are they asking for all participants who terminated with less than 100% vesting, or all participants with less than 100% vesting who took a distribution? I know it says number of participants who terminated, but then 15b has you list those people, along with the amount and date of distribution. The people who didn't take a distribution obviously wouldn't have that, so I didn't know if they needed included in 15a(6). Also since those people are made 100% vested if they don't take a distribution by the plan termination date, they may not be the people the IRS is interested in.

4. Number 4e - Is this participants as of the plan termination date, or some other date?

Thanks.

[Guest Sieve]

Here's how I do it:

1) 15(a) -- "Current year" is the end of the plan year of termination (i.e., the normal end of the plan year in which the plan terminated).

2) 18(b) -- I always enter the forfeitures resulting from terminations in that year, rather than the forfeitures actually allocated that year. That's because my plans allocate forfeitures in the year in which they occur. If your plan allocates forfeitures in the following year, then I would agree with you that you'd enter the amount of the forfeitures actually allocated in that year.

3) 15(a)(6) -- I list those separated from service with less than 100% vesting, whether or not a distribution occurred. If there is no distribution, then that column on the list is simply "N/A". I let the IRS see for themselves how many took distributions of less than 100% before the termination, and how many did not.

4) 4(e) -- I use plan termination date.