letsgoisles89

Hello - I'm running into a question with a plan audit that I am looking for assistance with. Any guidance would be greatly appreciated. Thank you. Facts: There are multiple defined contribution retirement plans sponsored by the same plan sponsor within one contract at John Hancock Life Insurance Company (a group annuity contract). The investments are pooled. Question: Should plans configured this way have a master trust agreement and follow the master trust reporting requirements for Form 5500's? If the answer is no, is there any guidance or rule that explains this?

Good afternoon, CPA here auditing a plan and hoping to run by an error encountered in the first-ever audit of a 401(k) plan. Facts are as follows: From inception 1/1/2019 through 12/31/20, the effective plan document had a 1 year service requirement with monthly entry and an autoenrollment feature. During this period, the plan operated as if the eligibility was immediate upon hire. Effective 1/1/21, the plan was restated to change the eligibility/entry date provisions to immediate and removed the autoenrollment feature. My question is: Can the plan sponsor correct the error related to the 2019 and 2020 plan years through the SCP under Revenue Procedure 2021-30 by retroactively amending the plan's service and entry date requirements to immediate to conform to how the plan operated during 2019 and 2020? Based on my reading if the Rev Proc, I would think the answer is yes as the amendment resulted in "an increase of a benefit, right, or feature", but am wondering if I am missing something? Thank you!

Thanks for your input!

Hi all, CPA here working on a Form 5500 audit (new account for us). The Plan is a defined contribution profit sharing plan that owns four life insurance policies with a total cash surrender value that comprises ~40% of plan assets. Are these contracts required to be reported on Form 5500 at cash value? I am being told by the Plan's third party administrator that they have never been reported as Plan assets because Form 5500 Schedule H Part I it states: "Do not enter the value of that portion of an insurance contract which guarantees, during this plan year, to pay a specific dollar benefit at a future date.". I am hoping to get some insight and/or pointed to some guidance as I am not too familiar with qualified plans that offer life insurance. I have had a few in the past where the value has been reported but the value was not significant to the plan, so it was never a sticking point with respect to our report. Any help would be greatly appreciated!