How should a profit sharing trust be reported? A client is the trustee of his own Profit Sharing Trust created back in 1966. I know about other Trust but never came across this type, anyone have any idea or knowledge about this.
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This is the trust established to create a fiduciary relationship between the trustee(s) and participants and beneficiaries of a profit sharing plan. Every profit sharing plan has one. If established in 66, and depending upon the number of participants in the plan, as well as the asset balance, the client may or may not be required to file form 5500s each year. Ask for the most recetn 5500, and this will help you determine what is going on. Also ask for the "plan document" for the profit sharing plan. -Bob -
Profit Sharing Trust
Thank you for the response, now I can do a lttle research and see what is going on. He is the only person in the plan and the asset balance is pretty high. I see that he does file a 5500 but I will ask him for the plan document. Thanks again. I'm glad I got one answer....Comment
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