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Showing results for tags 'schedule h'.
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(I originally posted this topic in the VEBA message board, but was not able to get much input. I'm hoping someone will see it here, and provide advice/guidance) I have a WRAP document that lists the following plans in Exhibit A as being part of the WRAP: Group Health Plan - A Group Health Plan - B Group Health Plan - C Group Dental Plan Group Basic Life Plan Group Voluntary Life Plan Group AD&D Plan Group LTD Plan This is a large plan (10,000+ participants). The Group Health Plans are funded through a VEBA trust. This results in the plan needing to file Schedule H and have an IQPA audit the plan. The other plans (Dental, Life, etc.) do not flow through the VEBA (but they are part of the WRAP). The employee portion of the premium is withheld and remitted to the applicable insurance companies as would be done in a fully insured plan. As far back as I can see (10+ years), the Form 5500 Schedule H and the auditor's financial statements have only reported assets and activity related to the VEBA trust. My understanding is that they audit the plan as a whole, but the financials only cover the Trust. The question has come up this year as to whether or not that is the correct way to prepare the Schedule H and Financials. Should the other plans be included too? I do not believe it would affect the "balance sheet" portion of the Schedule H because the fully-insured benefits would have a net-zero affect, but it would affect the "income statement". Any help or advice is greatly appreciated.
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I have a WRAP document that lists the following plans in Exhibit A as being part of the WRAP: Group Health Plan - A Group Health Plan - B Group Health Plan - C Group Dental Plan Group Basic Life Plan Group Voluntary Life Plan Group AD&D Plan Group LTD Plan This is a large plan (10,000+ participants). The Group Health Plans are funded through a VEBA trust. This results in the plan needing to file Schedule H and have an IQPA audit the plan. The other plans (Dental, Life, etc.) do not flow through the VEBA (but they are part of the WRAP). The employee portion of the premium is withheld and remitted to the applicable insurance companies as would be done in a fully insured plan. As far back as I can see (10+ years), the Form 5500 Schedule H and the auditor's financial statements have only reported assets and activity related to the VEBA trust. My understanding is that they audit the plan as a whole, but the financials only cover the Trust. The question has come up this year as to whether or not that is the correct way to prepare the Schedule H and Financials. Should the other plans be included too? I do not believe it would affect the "balance sheet" portion of the Schedule H because the fully-insured benefits would have a net-zero affect, but it would potentially affect the "income statement". Any help or advice is greatly appreciated.
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On what line of Form 5500, Schedule H would you report the value of a private hedge fund? Investors are not partners, the fund is not a registered investment, it is not a trust. Would you report it as a joint venture? Thanks for sharing your thoughts and experience.
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The 2015 5500 updated the definition of line 4l on the Schedule H to Line 4l. You must check “Yes” if any benefits due under the plan were not timely paid or not paid in full. This would include minimum required distributions to 5% owners who have attained 70½ whether or not retired and/or non-5% owners who have attained 70½ and have retired or separated from service, see section 401(a)(9) of the Code. Include in this amount the total of any outstanding amounts that were not paid when due in previous years that have continued to remain unpaid. Does anyone know why this was not included in the "Changes to Note" in the 2015 instructions? It does not appear to be optional.
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The auditor is insisting we report the corrective distributions (for the 2014 plan year, corrected on 3/1/2015) on the Schedule H in the same manner they are treating these distributions in their financial statement. Specifically, the auditor wants us to - 1. Report these corrective distributions as a payable at 12/31/14 for excess contributions paid in the following year. We are to list them on line 1j(b), Other liabilities. 2. Reduce the Participant contributions reported on line 2a(1)(B) by the amount of these corrective distributions because their best practice is to reduce employee contributions because these were not eligible contributions. The audior says these contributions are required to be remitted back to participants and therefore were not actual contributions in 2014. 3. Not report the corrective distributions on line 2f, on either the 2014 or 2015 Schedule H, because the participant contributions are being reduced by this amount. The auditor will add a footnote to the financial statement describing this activity. I know the Generally Accepted Accounting Principles (GAAP) the auditor uses for the financial statement wants the corrective distributions handled this way, but I never heard of the Schedule H being completed in this manner. Has anyone come across this situation this year? If you have, how did you handle it with the auditor and the client?
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I was curious as to opinions as to how on the income statement of the 5500 the lost earnings that an employer deposits to the plan due to late deposits of employee contributions and loan payments (or any type of restorative payment) should be shown? We have been showing as “other interest” or I suppose since we are now doing more calculations using highest performing fund and not DOL calculator maybe this should go under “other income” or possibly lumped in with earnings of the type of investment in the plan (e.g. mutual funds). Perhaps this could be shown as an employer contributions? Does anyone do this? This is not an employer contribution from the corporate side of things as not part of the 404(a) limit and the IRS has said it is just a business expense. Thoughts and opinions? I tried to find some formal clarification but could not find anything so if anyone has anything definitive that would be helpful too.
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