insurance preium on land owned by ps plan

[betheeg]

This may be a stupid question but I have a client that owns land under his participant directed account in a ps plan. He insures this land and has just received a bill for premiums due. Does he pay the bill out of plan assets, his own pocket, or out of business?

thanks for any help...

[Alan Simpson]

Since the land is part of a directed profit sharing account the directed account should pay the expenses, NOT the company or the participant from outside of the plan.