gap earnings

[Chippy]

Sorry, it's been so long since i've had to do adp/acp refunds, but are gap earnings still required?

[Chippy]

Do i have to report the ACP refund on the 5330 even if the deposit is not yet made to the plan?

[Lou S.]

Gap period income got axed a few years back, maybe with PPA if forgret whic actual law did away with gap period income.

Yes, though at this point I'd probably wait until the deposit is actually made to do the refund and 5330. I mean what do you do if the client never makes the matching deposit? Others may have a different view.

[ETA Consulting LLC]

I, too, remember when the IRS issued Regulations applying gap period earnings and shortly afterward it was changed (by "PPA" I believe). I, definitely, would not consider making the refund until the contribution is actually made. It does seem kinda odd that you're distributing beyond the 2 1/2 month mark when the deposit being distributed isn't even required to be made by then.

Nonetheless, you'd still have to make the deposit as the match must be made under plan terms; and there's no term stating you'd receive it only if it would pass ACP.

Good Luck!

[Chippy]

Thanks everyone!

[BG5150]

I think for '08 it was optional and then it was taken out for '09. Maybe optional for '09 and out for '10.