Reporting of Life Insurance Policy??

[chris]

What is required in the way of reporting re a life insurance policy held in the plan? Thanks for your help.

[jaemmons]

Are you referring to plan valuation reporting or 5500?

Plan valuation reflects the underlying CSV as the "retirement" benefit from the policy. The underlying death benefit is not reported as an asset or benefit to the plan.

For 5500 purposes, life insurance is viewed as a welfare benefit by the DOL, and as such category "4B" needs to be reflected on page 2 to the 5500. Also, Section III to the Schedule A now is where the premium payments are reported on these policies. Since they are nonexperience-rated contracts, complete question 9.