Forfeiture Account & 5500 Reporting

[Guest MS TPA]

Employer uses $5,000 in Forfeiture money to fund the $20,000 Profit Sharing contribution. How is this contribution handled relative to 5500 reporting? Since the $5,000 is already in the Forfeiture account and is part of the Beginning of the Year balance, would we report the Employer contribution as $15,000?

[TPAMan]

You got it - $15k! Contribution amount typically represents the 'new' money and/or deposits to the trust, rather than the allocated amount to the participants.

[Guest MS TPA]

Thanks for the quick response....anyone else?

[Molly the cat]

TPAMan is absolutely correct. If you don't handle it that way, your 5500 doesn't balance. The actual amount deposited to the plan is what the government is looking for on the 5500, not what is allocated to the participants.

[pmacduff]

I agree with $15,000. I was taught many moons ago that the employer contribution amount on the 5500 "should" match the Employer's deduction on the 1120 return (or whatever type of return the Employer files).

[Guest MS TPA]

Great to hear, thank you & have a great weekend!

[Bill Presson]

Thanks for the quick response....anyone else?

Anyone else see the Irony in "Ms TPA" not listening to "TPAMan"?

[Guest MS TPA]

Not a case of not listening--just one of folks in my group wanting more input. Although, I don't follow with the irony bit & TPAman-please enlighten me

[GMK]

Mr. Presson cleverly points out the same name irony of a Ms and a Man.

Might be clearer if you think of it as Ms. Smith and Smith_Man.

[david rigby]

Mr. Presson cleverly points out the same name irony of a Ms and a Man.

Might be clearer if you think of it as Ms. Smith and Smith_Man.

Hmmm. Perhaps the irony is unrelated to the name, but is related (apparently) to a Ms. listening to a Mr.

[Bill Presson]

Mr. Presson cleverly points out the same name irony of a Ms and a Man.

Might be clearer if you think of it as Ms. Smith and Smith_Man.

Hmmm. Perhaps the irony is unrelated to the name, but is related (apparently) to a Ms. listening to a Mr.

Mostly along these lines. It just appeared to be what my wife would post had I provided an answer.

[Guest MS TPA]

Yes, clever clever people-I appreciate the breakdown...it's been a little slow around here-Happy Holidays to all!