JohnCheek

If your client filed a 125 plan with an 001 number, there's an excellent change your client will be receiving correspondence, especially if you only attached a Schedule F to the 5500. I can't tell you whetherr it makes sense to try to correct; if it were me, I would call PWBA and ask them.

I believe you should be completing Part III, to report a "welfare type" policy. Part II is to report insurance contracts that are either investments of the plan, or are annuity policies that, in effect, transfer the pension obligation to the insurance company.

Actually, you can still have an audit on cash-basis financial statements, and DOL will accept them. There is nothing in ERISA that requires that the financial statements be in conformity with Generally Accepted Accounting Principles, which would require accrual basis accounting. Also, especially in a defined contribution plan, it might not be easy to determine if a contribution should be reported as receivable at year end. There must be a documented commitment (at year end) to make the contribution.

Disco Stu is right. The Schedule of assets held for investment actually requires two lists: a) all investment assets held at year end, and b) assets bought and sold during the plan year. The second schedule (bought and sold) has numerous exceptions, including most SEC-registered securities, bank CDs, government securities, etc. Also, any assets that are required to be reported on one of the other required schedules, such as the 5% transactions, or the prohibited transactions schedules, do not have to be reported on the bought and sold schedule. Most investments of most plans should be exempt from reporting on the second category. However, it is important to note that none of these exceptions apply to the first part, the assets actually held at year end. Most of the time, I would expect the auditors to provide these schedules, because their audit report is required to address these schedules.