Question on Schedule I - Financial Information

[Guest PLHart]

Instructions on Schedule I says "Do not enter the value of an insurance contract that guarantees during this plan year to pay a specific dollar benefit at a future date."

Does this mean that cash values of any whole life policies (which are, of course, guaranteed) in a participant directed 401k or profit sharing plan are NOT to be included on 5500 Schedule I or H?

I am confused - I have seen some takeover plans where prior recordkeepers have included CSV of whole life contracts and others who haven't.

[jaemmons]

Because life insurance is seen by the DOL as a welfare benefit, they are not reported as plan assets on the Schedule I or H. Now, I know that other practioners may disagree, but the logic seems to place consistency with how welfare benefit plan assets are reported. In a fully insured welfare plan, no Schedule I or H is necessary, since the plans benefits are being guaranteed by an insurance carrier. Also, keep in mind that benefits provided by an insurance carrier (ERISA 412(a)) don't need to be covered under a fidelity bond.