Schedule H, 4i

[Jean]

Need clarification on the Form 5500 instructions for Schedule H, 4i.

Plan's only investment type is mutual funds.

The instructions discuss what are assets held for investment, and identify 7 exceptions. Mutual funds are listed as an exception.

Would the answer to H, 4i be NO because of this? If YES, why?

[Guest dubya]

Jean,

The instructions for that question want you to list all assets held at the end of the year. It also wants assets both acquired and disposed of during the year to be reported as well. It is this latter requirement that gives 7 exceptions that do not have to be reported, one of which is mutual funds. But, that exception applies to only mutual funds bought and disposed of during the year.

So, if you have a plan whose end of the year assets include mutual funds, you are going to have to report them.