- quote -

Thanks, that does make sense.

What about Line 10g "Amounts received by the plan other than
contributions". I guess you have to include any interest
income, but instructions say do not include unrealized
gains/losses. In this case, the math with total assets does
not work. In other words: Total Assets at beginning of year
(11a ..a) + Contributions (10b) + Amounts other than
contributions 10(g) will NOT equal total assets at end of year
(11a .. b). I wonder if this is OK.

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- quote -

The question pretty clearly reads, "contributions made
FOR the plan year". So I used the total amount for 2005,
including amounts paid in both 2005 and 2006.

But for the end of year cash value, I used the cash value
on Dec 31, not counting pending contributions.

Steve

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MTW wrote:
- quote -

I am in a similar situation: need to file 5500EZ for an
Individual 401K. I think its easier to report contributions
on an accrual basis, as you always know how much you can
contribute in a given year, based on your income. So in
that case, I guess any contributions made in 2006 for 2005
would count, correct? Similary, any contributions made in
2005 for 2004 would not. Just clarifying..

Thanks
lzk

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Steve Pope wrote:

- quote -

....and the result in that regard could depend on whether you
have a "money purchase" plan where the contributions are
technically MANDATORY, versus a "profit sharing" plan where
the contributions are discretionary with the employer. But,
in any event, I've never seen or heard of a problem with
simply using the cash basis on the 5500.

MTW

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MTW <mtwingcpa[at]yahoo.com> wrote:

[snip answers to first two questions -- thanks]

- quote -

Thanks. By the latter piece of logic, a plan could have less
than 100K at year end, but more than 100K once the pending
contributions come in. I don't think anyone's ever looked at
it that way, but I could be mistaken.

I am now leaning towards pure cash basis on this one.

Steve

<< ================================================== ===== > << The foregoing was not intended or written to be used, > << nor can it used, for the purpose of avoiding penalties > << that may be imposed upon the taxpayer. > << > << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org. > << Copyright (2006) - All rights reserved. > << ================================================== ===== >

Steve Pope wrote:

- quote -

Recalling from memory, I don't think it is necessary to
provide separate "administrator" information if it is the same
as the "employer."

- quote -

"Profit sharing" is probably the best choice.

- quote -

Regardless of the instructions, I have always prepared these
forms on the "cash basis" so that the reported numbers agree
with the reports received from fund custodians. Otherwise,
you have to maintain separate reconciliations, etc., and
presumably you would include the "account receivable" for the
pending contribution in the ending asset value. Way too much
trouble given that no one seems to know just how, when or
where the government makes use of this info.

MTW

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I am filing 5500EZ for the first time. It is for a
one-participant plan that started out as a combination
Keogh, was restated ("GUST Converted") to a QRP, then again
restated to a Solo 401(k). The plan assets first exceeded
$100,000 during 2005, hence the requirement to file. The
plan resides at Charles Schwab based on adopting their
prototype plans. Plan year is calendar year.

Line 2(b) and 3(b), employer EIN and plan administrator EIN
-- is it okay that these be the same number (the EIN I've
always associated with this plan, since it was a Keogh)? Or
does a plan administrator need to have a separate EIN?

Line 6 -- is "profit sharing plan" correct? It seems more
applicable than ESOP, money-purchase plan, or stock bonus
plan.

Line 10b -- "Enter the total cash contributions receive by
the plan during the year and the contributions owed to the
plan at the end of the plan year". I made part of my 2005
contribution in 2005, and part in 2006. Do I include only
the first part, or both?

Thanks much,

Steve

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