Historically the Program has prepared the Form 5500 using the “accrual” method of accounting. This accrual accounting convention includes on Form 5500 all contributions intended for the plan year being reported (e.g., the 2017 plan year), even if a contribution is made after the close of that plan year (e.g., during 2018).
Beginning with the 2018 plan year, we will prepare Form 5500 using the “cash” method of accounting. Contributions will be reported strictly based on the year in which they were received, regardless of the plan year for which they were intended. Starting with the 2019 plan year, the contribution reported on your annual plan statements will be the same as the contribution amounts on Form 5500.
However, the Form 5500 filing for the 2018 plan year will be a “transition” year for reconciliation and reporting purposes. Any contributions made in 2018 relating to the 2017 plan year were reported on the 2017 Form 5500. As a result, we will omit those contributions from the 2018 Form 5500, which if you have a calendar year-end will be sent to you mid-June.
To assist you with your review of the 2018 Form 5500, we can provide 2017 and 2018 contribution summary reports upon request, which will help you to identify contributions reported in 2017 but omitted from the 2018 Form 5500.
We will be providing more information concerning the 2018 filing in the coming weeks, but welcome your questions in the meantime at 800.752.6313 or email@example.com.