Pooled separate account and Schedule D

[Richard Anderson]

Say a plan invests in variable annuity contracts with an insurance comapny. Is that considered a "pooled separate account" and therefore a Schedule D would be required?

[Guest Emiliano]

no

[Guest J. David Wright]

That was a short answer to a not so short question! A variable annuity contract is likely held in an insurance company separate account. Because it is held in a separate account, the insurance company may or may not file as a Direct Filing Entity. The insurance company sponsoring the variable annuity should tell you if they are a DFE filer. If they are a DFE filer, then the as part of the Plan Filing requirement should file a Schedule D. Most of the information to complete the Schedule D for the Plan should be on the Schedule A information provided by the Insurance company issueing the contract. The Type of entity should be a "P" for Pooled Separate Account and dollar amount should be the amount at year end in the PSA account. The insurance company should provide you with their EIN and their three digit entity number for the PSA.

[Kristina]

Whether the insurance company files as a DFE or not does not affect whether the plan is required to file a Sch D.

If the plan invests in an insurance contract in which the assets are held in separate accounts AT the insurance company, then a Sch D is required and the total PSA's must match the total of line 4 of all Sch A's.

The only difference between a Sch D prepared when the financial institution does file as a DFE and when they do not, is the PN on each line of the Sch D will be the plan number the financial institution assigned to the plan when they filed as a DFE. When the financial institution does not file as a DFE the PN on each line of the Sch D will be 000.

In this case, only the Insurance Company can tell you whether the investments were held in the pooled separate accounts or not.