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Schedule P - Passive Trustee


Guest Jim Jesikiewicz

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Guest Jim Jesikiewicz
Posted

Do passive trustee's (not direct) need to have a schedule P filled out for the 5500?

They do NOT provide any financial information to the plan and do NOT receive any contributions or money at all.

Guest Emiliano
Posted

I always thought that Schedule P was optional.

Guest Jim Jesikiewicz
Posted

It is optional, trustees of Code Section 401(a) plans (qualified pension, P/S, ESOP) may file.

It is more due diligence on behalf of the TPA.

Guest Bandb
Posted

What does "due diligence by TPA" mean? Are you suggesting that the TPA is responsible for the filing?

Guest Jim Jesikiewicz
Posted

due diligence being that Schedule P is optional and how would an employer know if one should be filed or not. Your client is paying you for the 5500 and to properly look out for their interests ...

Posted

If you really want to split hairs, the Schedule P does not start the statute of limitations on the 5500, it starts the statute of limitations running on the tax-exempt Trust that is holding the assets of the pension plan. It's important because, if the Plan is somehow disqualified, the Trust becomes taxable.

And, it really only needs one trustee, any trustee, to file a schedule P to accomplish that.

John Cheek CPA

www.cpaSPAN.com

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