Contributions (employee and employer) increase plan assets. Distributions (of any type) decrease plan assets. Investment earnings increase (if investment gains) or decrease (if investment losses) plan assets. Any change in plan assets can be attributed to these factors.
Year's Change in Plan Assets = Contributions - Distributions + Investment Earnings
In other words...
Investment Earnings = Year's Change in Plan Assets - Contributions + Distributions
We've set up PDF and html worksheets telling you where within your IRS Forms and Schedules to find the figures for this calculation:
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Item 10g on page 4 of Form 5500-SF asks for your plan's earnings from investments for the year. The numbers you need to make the calculation are all contained elsewhere within your Form 5500-SF.
Most users find it easiest to print this page, then fill in the below Worksheet - or you can use the PDF (either online or downloaded) and type in your numbers, though you'll still have to do the addition and subtraction yourself; the PDF will not perform the calculations for you. (Also, remember that the PDF contains both Form 5500-SF and Schedule I instructions on the same page; ignore whichever set is not relevant to your plan.)
Complete the below to make the Investment Earnings = Year's Change in Plan Assets - Contributions + Distributions calculation for your Form 5500-SF. References in the Worksheet (such as to "items") are to your Form 5500-SF.
| Earnings From Investments Calculation Worksheet - for Form 5500-SF Users | ||
| CHANGE IN ASSETS (subtract b from a, below) | $ | |
| (a) End of Year Total Plan Assets (item 11a(b)) | $ | |
| (b) Beginning of Year Total Plan Assets (item 11a(a)) | $ | |
| less PLAN CONTRIBUTIONS (sum of c thru f, below) | - $ | |
| (c) item 10b | $<> | |
| (d) item 10c | $ | |
| (e) rollovers in | $ | |
| (f) trust transfers in | $ | |
| plus PLAN DISTRIBUTIONS (sum of g thru i, below) | + $ | |
| (g) item 10d | $ | |
| (h) item 10e | $ | |
| (i) item 10f | $ | |
| plus PLAN EXPENSES, if any (item 10h) | + $ | |
| equals EARNINGS FROM INVESTMENTS | $ | |
Use the final number to figure item 10g on page 4 of Form 5500-SF.
tem 2c on page 1 of your Schedule I asks for your plan's earnings from investments for the year. The numbers you need to make the calculation are all contained elsewhere within your Schedule I.
Most users find it easiest to print this page, then fill in the below Worksheet - or you can use the PDF (either online or downloaded) and type in your numbers, though you'll still have to do the addition and subtraction yourself; the PDF will not perform the calculations for you. (Also, remember that the PDF contains both Form 5500-SF and Schedule I instructions on the same page; ignore whichever set is not relevant to your plan.)
Complete the below to make the Investment Earnings = Year's Change in Plan Assets - Contributions + Distributions calculation for your Schedule I. References in the Worksheet (such as to "items") are to your Schedule I.
| Earnings From Investments Calculation Worksheet - for Schedule I Users | ||
| CHANGE IN ASSETS (subtract b from a, below) | $ | |
| (a) End of Year Total Plan Assets (item 1a(b)) | $ | |
| (b) Beginning of Year Total Plan Assets (item 1a(a)) | $ | |
| less PLAN CONTRIBUTIONS (sum of c thru f, below) | - $ | |
| (c) item 2a(1) | $<> | |
| (d) item 2a(2) | $ | |
| (e) item 2a(3) | $ | |
| (f) item 2b | $ | |
| plus PLAN DISTRIBUTIONS (sum of g and h, below) | + $ | |
| (g) item 2i | $ | |
| (h) item 2k | $ | |
| plus PLAN EXPENSES, if any (item 2h) | + $ | |
| equals EARNINGS FROM INVESTMENTS | $ | |
Enter the final number on page 1 item 2c of Schedule I.
Some of our 401k clients find it most useful to use our Earnings From Investments Worksheet PDF because they can download the Worksheet or use it online, input their plan's pertinent information, then print the resulting completed Worksheet for their records.