How is a 5500 prepared to properly reflect an SCP (formerly known as A

[Guest Reneeg]

How is a 5500 prepared to properly reflect an SCP (fka APRSC) deposit? Contribution is ER contribution and the gain is gain?! Or does it get lumped together?

[Alf]

I have never done it, but the correction is a contribution regardless of whether it is made to replace earnings or for some other reason, isn't it? Just because you make a contribution to make up for earnings that were missed doesn't make the money earnings.

[Guest Jeff V]

I would think that once assets are place in the trust, and those assets have gains/losses, they should be considered gains/losses.

If you're talking about gains that are implied (made after the prohibited transaction, but before the interest is calculated, for example), I would doubt there's any guidance on it. Maybe you could call the IRS and get them to provide guidance for you, then record the date and representative's name who gave you guidance in the 5500 file.

[RCK]

I agree with Alf. We just did something similar--submitted an employer contribution that happened to represent employee contribution, employer contribution, and earnings. We will show the entire amount as an employer contribution, not split three ways.

It seems to me that if you argue that the gain component should be shown as a gain, then you should show the employee component and an employee contribution--and neither one makes sense to me.