Schedule B of Form 5500

[Guest meggie]

What information goes on line 1b(1) Current Value of Assets.

I admit the instructions for this line are not the best, but when you compare those instructions with those of line 1b(2), I'm of the opinion that both lines must tie together- the only difference being that line 1 is reported at market value and line 2 is reported at actuarial value----which further means that we must include contributions paid after the valuation date that are applicable to the prior plan year on both lines.

Some practitioners have excluded the contributions received after the val date on line 1b(1) but include them in 1b(2). I disagree with that and believe both lines must linclude these contributions.

Does anyone have an opinion and possibly documentation (other than the instructions) on what should be entered onto line b1(1)?

Thanks

[david rigby]

Per the instructions for Line 1b(1), "The current value is the same as the fair market value."

BTW, the asset values on (1) and (2) are as of the valuation date entered in Line 1a.

The "current value" on Line 2a is the market value as of the first day of the plan year.

[Guest meggie]

Thank you- the crux of the matter is are we required to include contributions applicable to the prior plan year but received after the valuation date on line 1b(1) or must this line show the market value on a cash basis even though the actuarial value (line 1(B) (2) ) includes those contributions?

[david rigby]

The values on both lines 1b(1) and 1b(2) should include accrued contributions as of your valuation date, as you state, that apply to the prior plan year. Note that the Schedule B is concerned only with minimum requirements under IRC 412, not deductible contributions under 404. If your 404 assets differ from your 412 assets, that is irrelevant to the Schedule B.

[Blinky the 3-eyed Fish]

The values put in 1(B)(1) or 1(B)(2) are not 412 or 404 assets. They are market value and actuarial value, the adjustments required for 412 or 404 are done from these values.

[Guest meggie]

To the last respondent---are you saying that you do not include contributions for the prior year that were received after the valuation date?? I believe you do. The instructions for those 2 lines caution the person not to include contributions applicable to the filing year but there is no mention of excluding contributions for the prior year even if received after the valuation date.

[Blinky the 3-eyed Fish]

I am not saying that at all. You must include contributions receivable for the prior year (accrued contributions).