Unreported Assets

[Guest cke66edy]

Small PS Dr. plan. Just found out that 20+ years ago one of the Dr.'s made after-tax voluntary contributions which have never been included in the allocation or 5500 reporting. Assets are titled in the Plan's name in a separate brokerage account. How should this be reported on the 5500 as beginning balance will not match ending balance from prior year, etc.

Any thoughts are appreciated.

[ESOP Guy]

How big are the unreported assets in relationship to the reported asseets?

For example, if the unreported assets are $20k and total previously reported assets was $2-3 million I would not adj the bb, but just wash the difference in earnings when adding the missed assets to the eb.

If the unreported assets are $500k and total previously reported assets were $600k I would have to think about it harder.

I am unaware of any offical guidence on this subject.

I am of the opinion this industry "over thinks 5500s". There is no tax due with these returns. If the amount isn't very material do what is simple in my opinion.

I know plenty of people who think I am too relaxed about 5500s with that opinion.

And once again this is my opinion I know of no offical guidence. The strict answer I suspect is amend all open years. But that just moves the bb problem back to a closed year.

[Bird]

Agree with ESOP Guy 100% on all comments. Unless it is a very significant part of the total picture, just bring it back in as "other income" and be done with it.