Match Forfeiture Reduce/No Match made/5500SF

[Cathy from Chicago]

Non-calendar year plan - Match forfeitures sent to Trustee who uses to reduce future Match contributions. This last plan year employer suspended Match but it is now once again active. Roughly $6000 of Match forfeitures were sent to Trustee during last plan year and are now available for current Plan Year use. How and/or where is the $6000 of forfeitures shown on the 5500SF so it balances? List as an "other" expense? Any suggestions? Thanks

[ESOP Guy]

Your question doesn’t make sense to me. So let me ask a clarifying question.

Are you including the forf amount in the ending asset value for question 7© ?

Example:

The total of the participant accounts is $94,000 and the forfeiture account is $6,000. Do would you put $94,000 or $100,000 on 7©?

The other way of putting it is this—is 7© = to allocated assets or total assets? I ask because it seems like your ending assets would have to = allocated assets, not total assets for you to be having your problem. And if my guess is correct (and it might be wrong) then I would say you need to put total assets on 7© and your problem should go away. If my guess is wrong then I would have to see more data to help.

[Cathy from Chicago]

7 a and 7c are the same number and are "net" of the $6000 forfeiture. The problem is in the details listed in questions 8...employee contributions are the salary deferrals and are actual number...had the employer made a match the employer contribution would be a 'net' number (deducting the match forfeiture) but since no match was made yet there were $6000 of forfeitures sent to employer to reduce this plan year's match, question 8i doesn't tie in with 7c minus 7a as 'over' $6000. could the $6000 be considered a liability in 7b? If so, everything would balance. It also balances if I put the $6000 as an 'other' expense in 8g but it's really not an expense. I appreciate your time - new experience for me. thanks.

Your question doesn’t make sense to me. So let me ask a clarifying question.

Are you including the forf amount in the ending asset value for question 7© ?

Example:

The total of the participant accounts is $94,000 and the forfeiture account is $6,000. Do would you put $94,000 or $100,000 on 7©?

The other way of putting it is this—is 7© = to allocated assets or total assets? I ask because it seems like your ending assets would have to = allocated assets, not total assets for you to be having your problem. And if my guess is correct (and it might be wrong) then I would say you need to put total assets on 7© and your problem should go away. If my guess is wrong then I would have to see more data to help.

[ESOP Guy]

When you say you “sent” the forfeitures to the employers, are you saying a check was actually cut by the trust for $6,000 and that money was given to the employer?

Because if you are saying the money left the trust and went back to the employer your problem isn't the 5500-SF, but the sending the money to the employer. The money should never had left the trust.