trade date vs payroll date

[thepensionmaven]

We have a partnership profit sharing plan effective 2013.

Using trade date, less than $250K in plan as of 1/1/2014, using payroll date, $260K in plan with only 2013 contributions.

Trade date was basis for 2015 5500s as the first return filed.

For 2015, both partners contributed $53K each, but for 2016, only one partner contributed.

To be consistent,  if we used payroll date for the 2016 5500s, the trust report shows $159K in contributions.made during 2016.

Won't the fact that there are two participants in the plan and the contribution made during the year, cause a red flag to either or both DOL and IRS???

 

[ETA Consulting LLC]

No.  As long as your method is consistent, there wouldn't be an issue; despite how odd it may look.

Good Luck!