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[caryn22359]

I am preparing a 5500 form. This is a single employer plan. The assets go into a brokerage account . The broker usually makes the decisions on where the funds are going.When the market was soft the trustee put the assets in to a certificate of deposit with the bank.

Question for line 8 Only the secretary/trustee and president is making this decision.There is one more employee participant who really has no say. Should box 2g be checked ( Total participant directed account plan be checked) or 2 h partial participant directed account plan be checked.

Thanks

[Archimage]

Are you saying the president and secretary are making the investment decisions for everyone or just themselves?

[JanetM]

From what you wrote I see it as being more a Trustee directed plan and neither 2G or 2H would be marked.

In General .....

2G is used for true individual account plans where participant makes all investment elections.

2H is used for participant directed plans that also have employer contributions (match, profit sharing) whose investment is directed by Plan/Trustee.

[E as in ERISA]

If the individual is wearing his "participant" hat when making the investment selection, then you'd have a discrimination problem allowing only an HCE to direct investments. But it appears he's probably wearing his "fiduciary" hat so you wouldn't have that issue. And then as JM says you wouldn't check either box.

[caryn22359]

I am preparing a 5500 form. This is a single employer plan. The assets go into a brokerage account . The broker usually makes the decisions on where the funds are going.When the market was soft the trustee put the assets in to a certificate of deposit with the bank.

Question for line 8 Only the secretary/trustee and president is making this decision.There is one more employee participant who really has no say. Should box 2g be checked ( Total participant directed account plan be checked) or 2 h partial participant directed account plan be checked.

Thanks

The secretarty really makes all the decisions and the broker guides her. This is a 3 participant plan

[caryn22359]

From what you wrote I see it as being more a Trustee directed plan and neither 2G or 2H would be marked.

In General .....

2G is used for true individual account plans where participant makes all investment elections.

2H is used for participant directed plans that also have employer contributions (match, profit sharing) whose investment is directed by Plan/Trustee.

Would I check 2H because they make employer contributions each year. This is a defined contribution plan and yes this is a trustee directed plan.

[Guest Pensions in Paradise]

Based on what you've described, you would NOT check 2F, 2G, 2H, or 2R.

[caryn22359]

Based on what you've described, you would NOT check 2F, 2G, 2H, or 2R.

I am still a little confused. If the trustee gives the money to the broker and the employer is making contribution s why would's 2R not be checked.

Than-you

[caryn22359]

If a wrong box was checked is this a crime by the DOL>

[E as in ERISA]

Someone else probably ought to be filling out that form.

[JanetM]

E is right, you don't seem to understand the concept of Trustee vs participant direction and brokerage accounts. You should look for some who has some knowledge in this area.