Accrual Basis Form 5500 - Recordkeeping Fees Paid by Forfeitures

[Vlad401k]

Let's say the Form 5500 is prepared on accrual rather than cash basis for a 401k plan. If a recordkeeping invoice (that was payable for 2014) is paid from forfeitures after year end (in 2015), should that amount be counted in ending balance for 2014?

Basically, let's say the ending balance on cash basis is $1,000,000 and the invoice for 2014 that was paid from forfeitures (with the actual payment date in 2015) is $10,000. Should the ending balance be $1,000,000 or $990,000?

[Mike Preston]

I'd show 1,000,000 in assets and 10,000 in liabilities and show the net as 990,000. If the form allows. If all it asks is net assets then 990,000 it is.