Form 5500 Question Part III 8(b)

[SJones]

Hello,

Based on a unique situation that I never experienced before, am trying to figure out what to enter for Line 8(b).

Scenario (with mock numbers but that captures the scenario).

Starting Balance - 300,000

Contributions - 10,000

Dividends/Interest income etc. - 5,000

Ending Balance - 290,000 (there was loss in value of assets in the plan).

So, question is, on Line 8(b) should I enter    -25,000+5000= -20,000, comes from 25,000 loss in assets values and 5,000 income from Dividends/Interest?

Then starting balance of 300,000 plus 10,000 contribution = 310,000 with loss of 20,000 leads to Ending Balance of 290,000.

 

Thanks,

[Bird]

You're talking about the SF, right?  Yes, "Other income (loss)" is exactly what the name implies - net gains and losses of all kinds.  But note that expenses are carved out separately.

Not really unique though...

[SJones]

Hello,

Thanks for you reply.

Yes, was talking about SF-5500 and yes you are correct that there are Expenses that are listed on a separate line item.

I think the confusion is on Earnings/Loss. Since, no assets were sold, there is NO Loss per se. Don;t know if I explained this properly. The reduction is due to Asset Value changes.

So, I think the way to enter would be:

BOY Balance - 300,000, Earnings - 5000, Contributions - 10,000, Expenses - 100, EOY Balance - 290,000

Does that sound right? 

[Bob the Swimmer]

Unrealized losses in a portfolio of assets still count as losses from year to year on the 5500 even though nothing has been sold.

[SJones]

10 hours ago, Bird said:

You're talking about the SF, right?  .....

Not really unique though...

With the long running bull market, last year was the first one since I had this 401k where the value decreased year over year. The markets have been just so volatile.

[SJones]

1 hour ago, Bob the Swimmer said:

Unrealized losses in a portfolio of assets still count as losses from year to year on the 5500 even though nothing has been sold.

Thank you for your reply. Yes, you are right.

See in Instruction sheet for SF-5500,

"Other income such as unrealized appreciation (depreciation) in plan assets"

 

Thanks to all for your help.