Help with Sch H - line 3 - is auditor opinion necessary?

[Guest welcomehome]

We have a 401(k) plan that is terminating and is in the process of distributing all the assets. At the beginning of the year, there were over 100 participants, 80 of whom had no account balance. By the end of the year there are only 37 participants. The assets are invested in a PSA. On Line 3 of the schedule H, there now is a line that states ' The opinion of an independent qualified public accountant is not attached because (1) The Form 5500 is filed for a CCT, PSA or MTIA; (2) ...(not needed).' Can I interpret this that the plan does not need to get an audior's report since the monies are in a PSA? Thanks for any insight.

[WDIK]

I do not think that the exception listed in 3(d)(1) applies in your situation.

The plan includes investments in a Pooled Separate Account, but the plan is not a PSA.

[jquazza]

I agree with WDIK. This option is used by certain financial institutions (Banks, Insurance Companies etc...) who sponsor CCTs, PSAs, MTIA etc... If a 5500 is filed for the CCT or PSA..., then when you complete shchedule H for a plan that invested in such contract, you do not have to report the underlying assets, you only have to report that the plan invested so much in PSA etc...

If your plan had more than 100 participants at the beginning of the year, you have to file a schedule H and get an accountant's opinion.

[Guest welcomehome]

Thanks for the info. I figured we needed the report but I don;t know how we are going to get it being that the company is bankrupt. Does anyone know of any way around having to get the auditor's report?