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retroactive defined benefit plan and 5500 Filing


Rai123

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We're a bit confused on how the 5500 filings work for a retroactive plan.

Background: We created a Defined Benefit Plan for 2021 by the clients corp due date in 2022. We're now working on the 5500 Tax Forms for the plan for 2021 and 2022. Please note we use Relius Gov't Forms.

Question 1: Our understanding is we will need to do two separate forms using the 2022 5500 SF. One for 2021 and check off the retroactive option on the SF. However do we enter 1/1/2021-12/31/2021 as the plan year for this form? (this is what we do when we're using a prior year form to complete a final tax form so it makes sense).

Question 2: the instructions are a bit confusing because they state that the prior year SB (2021) must be attached as an external attachment as well as the 2022 SB. Does this mean we should only complete one tax form and carry forward to the ending balance as of 12/31/2022. In other words do one tax form for 2022 mark off the retroactive box attach the 2021 SB as an external attachment and the 2022 SB. However, the 5500 SF would have a zero beginning balance and include all contributions for both years and ending balance as of 12/31/2022 (hope that maks sense :)) if this is correct, please ignore question one!

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18 hours ago, Rai123 said:

In other words do one tax form for 2022 mark off the retroactive box attach the 2021 SB as an external attachment and the 2022 SB.

Yes this.

18 hours ago, Rai123 said:

However, the 5500 SF would have a zero beginning balance and include all contributions for both years and ending balance as of 12/31/2022

Depends on whether you are doing cash or accrued accounting on the contributions, and if cash, the timing.

You are basically skipping the 2021 reporting so you can have a 2022 beginning balance even though it is the first return filed.

Ed Snyder

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