2018 5500-EZ Lines 6a2, 7a, 9

[BT]

For the 2018 Form 5500-EZ:

QUESTION RE LINE 6a2
11/30/18 - Solo 401k participant loan taken; $50k; no loan repayments made in 2018.
12/31/18 - Solo 401k total plan assets in brokerage account $340k (390 - 50 = 340).
Which amount should be reported on line 6a2… $340k or $390k… which one?

QUESTION RE LINE 7a
2/1/19 - Employer contribution for 2018; $3k.
Even though the contribution occurred in 2019 (and was for the 2018 year), $3k is reported on line 7a, correct?  Yes?  No?

QUESTION RE LINE 9
The plan had a participant loan during 2018.
What amount goes on line 9… outstanding loan principal as of year end… outstanding loan principal plus interest as of year end… some other amount?

Thanks for any help you can provide… much appreciated!

[RatherBeGolfing]

36 minutes ago, BT said:

QUESTION RE LINE 6a2
11/30/18 - Solo 401k participant loan taken; $50k; no loan repayments made in 2018.
12/31/18 - Solo 401k total plan assets in brokerage account $340k (390 - 50 = 340).
Which amount should be reported on line 6a2… $340k or $390k… which one?

$390k

36 minutes ago, BT said:

QUESTION RE LINE 7a
2/1/19 - Employer contribution for 2018; $3k.
Even though the contribution occurred in 2019 (and was for the 2018 year), $3k is reported on line 7a, correct?  Yes?  No?

You can report on either cash or accrual basis as long as you are consistent.  If you use cash basis then its only contributions before the end of the plan year.  Using accrual basis you report contributions made on behalf of the plan year, even if they are actually deposited in the next calendar year.  Most people report contributions made on behalf of the plan year because it lines up with the deductions.  In this case, $3k is reported for 2018 even though the deposit was in 2019.

42 minutes ago, BT said:

QUESTION RE LINE 9
The plan had a participant loan during 2018.
What amount goes on line 9… outstanding loan principal as of year end… outstanding loan principal plus interest as of year end… some other amount?

The loan balance at the end of the plan year.

[BT]

When you say "loan balance," do you mean principal only... or principal and interest over the entire life of the loan... or some other amount?  Thanks.

[RatherBeGolfing]

Current balance.  Since its a new loan, the interest hasn't accrued yet.  Do you have something like an amortization schedule for the loan detailing balance and payment details?

 

[BT]

Yes.  I have the amortization table.  Payments are made quarterly.  The first payment (principal + interest) was made 6/30/18.

P.S. The example in my original question was just for illustration purposes.

[RatherBeGolfing]

10 hours ago, BT said:

Yes.  I have the amortization table.  Payments are made quarterly.  The first payment (principal + interest) was made 6/30/18.

P.S. The example in my original question was just for illustration purposes.

Looking at your amortization table, use the ending balance that corresponds to the number of payments you have made.

 

[BadgerDon]

In the example above, say items 6a-6c are done on a cash basis and I show $390k for my end of year assets. That is, I don't include the $3k contribution made after PYE in my end of year assets.

Assuming no ER contributions are made during calendar year 2018, do I HAVE TO report $0 on line 7a or can I choose whether to report $0 or $3k on line 7a? I'd like to report $3k on line 7a as the sponsor give us the contributions on an accrual basis, but my sense from the instructions is that I should use the same method of accounting for both item 6 and item 7 and do report $0 for contributions if I'm using cash basis for item 6.