Schedule H, item 4j - When determining if a series of transactions of

[Guest SPOT]

When determining if a series of transactions of the same issue is >5%, do I combine buys and sells for the plan year, or keep separate. For instance, say 5% is 100,000. Purchases of the same issue total 60,000 and sales of the same issue total 40,000. Do I consider that this series of transactions is reportable because it exceeds $100,000 (60,000+40,000)?

Are the $40,000 and $60,000 compared to the $100,000 separately?

[Guest galdridge]

Purchases and sales of nonparticipant-directed security transactions should be aggregated to determining if you have a reportable transaction for a series of transactions involving securities of the same issue.

For example, if a Plan sells common stock of NewCo. for a price that equals 4% of Plan assets, as defined, and later buys common stock of NewCo. for a price that equals 2% of Plan assets, then the transactions should be reported because they involve securities of the same issue and the gross value of the series aggregate to more than 5% of Plan assets even though separately the net value of the 4% sale and the 2% purchase is less than 5%.

Glenn Aldridge, CPA

Audit Manager

Bennett Thrasher PC

Atlanta, GA

[david rigby]

What is the usual method of providing the Schedule of Reportable Tranactions under Line 4(j) of Schedule H?

Specifically, a bank or other trustee usually includes this in the year-end trust statement. But a broker does not. For TPAs who prepare 5500s, how do you deal with this ?

[JohnCheek]

I'm a CPA, not a TPA, but my usual method of generating the Schedule of 5% transactions is to look through the activity for the entire year. It is not often that I get a schedule prepared by a bank, and even then, I find I neeed to make sure it is complete.