Hello everyone,
I’m not sure if this where to post this, but I was wondering if you could advise me on this issue.
My relative’s company recently sent us a statement of their retirement profit-sharing account. The previous year’s balance was around $70,000 but dropped to $67,000 due to the “LossGain” section saying -$9,000 accompanied by the “Contribution” section saying $6,000.
Is this allowed/legal? I thought profit-sharing balances from previous years weren’t supposed to experience losses? Sure maybe no gains if the company lost revenue, but for the balance to drop from the previous year seems wrong to me.
Can someone with better understanding of this explain it to me? Thank you so much