Chippy Posted September 25, 2014 Posted September 25, 2014 When an uncashed participant distribution check is returned to the plan and placed in the forfeiture account, Where should that be shown on the 5500?
Andy the Actuary Posted September 25, 2014 Posted September 25, 2014 Two choices with same end result to the plan come to mind: (1) Report as distribution and show as other income; or (2) Revisionist approach -- there was no transaction. It's hard to envision this would have create an unresolvable issue. The material provided and the opinions expressed in this post are for general informational purposes only and should not be used or relied upon as the basis for any action or inaction. You should obtain appropriate tax, legal, or other professional advice.
Chippy Posted September 25, 2014 Author Posted September 25, 2014 This is a distribution from a prior year.
Andy the Actuary Posted September 25, 2014 Posted September 25, 2014 Change the facts, change the answer. (1). Net from benefit distributions or (2). Report as other income. Again, wouldn't expect to pose a problem either way. The material provided and the opinions expressed in this post are for general informational purposes only and should not be used or relied upon as the basis for any action or inaction. You should obtain appropriate tax, legal, or other professional advice.
ESOP Guy Posted September 25, 2014 Posted September 25, 2014 I tend to go with other income just so my distributions = the 1099-Rs and so forth. I have no idea if anyone checks those numbers against each other but that is what I do and why.
Chippy Posted September 25, 2014 Author Posted September 25, 2014 thanks. I put it in other income, and then when I reviewed it, I wasn't so sure.
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