Schedule I line 4i-Does Money Market Account Count as a single security?

[Guest spanarkle]

I have a pooled profit sharing plan that has > 50% of their plan assets in a Money Market Account (I'm not sure who the investment advisor is). Line 4i asks if more than 20% of the assets are in a single security, debt, mortgage, parcel of real estate, or joint/venture interest. We generally do not count Mutual Funds as a "single issue" since they are invested in many other stocks when answering this question but are unsure about Money Market accounts.

[goldtpa]

The instructions for the 5500 state that you should count securities of the same issue as a single security. The example in the instructions state that you should count CDs issued by the same bank as a single security, eventhough they have different maturity dates. I would then assume that a money market account issued by a bank or mutual fund would be a single security.

[jquazza]

I agree with GoldTPA, and I might add that I disagree with you when it comes to mutual funds. They should be considered securities (The 5500 Preparer's Manual agrees with this as well.)

[Archimage]

I agree with JQ on the mutual fund issue. The IRS/DOL is looking to make sure that plan investments are diversified. If you have all of your assets in Technology Fund, are you truly diversified? Of course not. That is why you need to treat a mutual fund as a single security.