Schudele 5500 Schedle H line 4i assets held for investment

[Guest Kriso]

In reading the 5500 instructions, they say "except interests issued by a company registered under the investment Company Act of 1940 (e.g. a mutual fund). If a plan only invests in mutual funds would line 4i be "No" and no attached schedule is necessary? Plan auditor said to check "Yes" and wrote in "See plan audit".

[Harwood]

The instruction says you can ignore mutual funds that "are purchased during the plan year and sold before the end of the plan year." You cannot ignore mutual funds held at the end of the plan year.

[Guest Kriso]

Thanks. Guess I was confused by the AND and EXCEPT.

"Any investment asset held by the plan on the last day of the plan year; AND

Any investment asset purchased during the plan year and sold before the end of the plan year EXCEPT:.......mutual funds.

Wonder if an English teacher could write that better??!!