Mis-reporting deductions on tax return

[Cynchbeast]

We have client filing 5500-EZ (just husband and wife). In one plan year, they deducted $4,000 more than they contributed. The next year, they deducted $4,000 less than they contributed. Net deductions and contributions are the same. Accountant is aware of this (we don't know if he is doing anything about it or not).

Any concerns from the stand point of the plan that we, as TPA need to address?

[QDROphile]

What does your contract make you responsible for? If your engegement includes assistance with the Form 5500 and you become aware that something is inaccurate, at a minimum you need to report the inaccuracy to the person responsible. Even if Form 5500 is outside of your engagement, a word to responsible person is a good professional courtesy, but don't make it your responsibility by how you report.

An an auditor might pass on the net of zero between the two years, but it does not mean that everything is square on taxes.