Schedule I - Participant Loans

[MBCarey]

I know that o/s participant loan balances have to be reported as part of the total assets. But when loan payments are made back to the deferral account and are included in total Salary Deferrals, should the loan payment amounts be backed out of that number on Line 2a2 of the Schedule I? Also, is the interest paid back on the loans adjusted on the Other Income line?

The more I do these the more dumb I get. Thanks

[pmacduff]

Loan repayments should not be reported with "salary deferrals"!?!?! Loan repayments are simply replenishing the principal portion of the loan and adding interest. The loan interest is included on the other income line with overall plan earnings/losses.

[E as in ERISA]

The principal portion of the loan repayments are merely changes in investments -- the loan fund is reduced and the fund in which the money is reinvested increases. The interest portion of the loan repayment is investment income (on the loan fund).