Return of Mistaken Distribution

[BTH]

In 2011, a distribution is made and reported on the 2011 5500-SF under line 8d - Benefits Paid. Turns out the participant received the wrong amount (too much) and in 2012 actually returned the excess portion to the Plan. Any thoughts on how the return of the mistaken distribution should be reported on the 5500-SF for 2012? Not sure if there is a right answer, but the following seem to be the options:

8a(3) Other Contributions

8b Other Income

8d Add back to Benefits Paid

8j Transfer to the plan

Thanks.

[ETA Consulting LLC]

In 2011, a distribution is made and reported on the 2011 5500-SF under line 8d - Benefits Paid. Turns out the participant received the wrong amount (too much) and in 2012 actually returned the excess portion to the Plan. Any thoughts on how the return of the mistaken distribution should be reported on the 5500-SF for 2012? Not sure if there is a right answer, but the following seem to be the options:

8a(3) Other Contributions

8b Other Income

8d Add back to Benefits Paid

8j Transfer to the plan

Thanks.

I would actually add it back to benefits paid (provided it there was some other benefits paid during the year to offset). Even if it weren't, I'd still attempt to do it that way. Maybe even Other income. If ever asked on audit, you have a detailed explanation of what each amount was. DOL auditors look for reason; not necessarily right vs. wrong.

Good Luck!

[pmacduff]

I'm with ERISAtk....I'd use the benefits paid section.

If I have to make an adjustment in a subsequent year I like to use the same category for tracking purposes.