Distribution Requested in 2012; Paid in 2013

[Guest ELomotan]

If a participant made a distribution request from their 401(k) account on 12/27/12 but the distribution was not processed and paid until 1/3/13 is it correct to record it as a payable on the plan's financial statements or should distributions only be recorded when paid?

[Bird]

We only record them when paid.

[Lou S.]

Same here. So much eaiser to tie the 1099-Rs to the distribution amount on the 5500.

Though we have had a few auditors ask us for distributions requested before year end but not yet paid.