Schedule of Assets Held - mutual funds

[Monica Barnard]

401(k) plan is a large plan filer. All of plan's assets are participant directed and held in separate accounts at a mutual fund company.

I know I have to check line 4i "YES" - assets held for investment purposes. Is there somewhere I could see a sample of the schedule needed for mutual funds?

The format is

(a) {What the heck is this column for???}

(b) Identity of issue, borrower, lessor, or similar party....would this be "XYZ Mutual Fund Co"?

© Description of investment including maturity date, rate of interest, collateral, par or maturity value.... would this be "XYZ Balanced Fund"?

(d) Cost....does this mean that I have to list purchase of each individual transaction (2 pay periods per month, with 12 funds available for 175 participants)?

(e) Current Value - I understand this one.

Also, does this mean I have to list individually the info on each participant loan?

There should be a smilie pulling out his/her hair

Thanks

Monica

[Leopurrd]

What 5500 program do you use? I know Relius gives an example, but i don't think it has the funds listed, just how you can set it up. Relius also has the actual form available behind the Schedule H.

If you need to do it on your own, you usually just list the mutual fund (total, not by person), the cost of the mutual fund (which the investment co. should be able to provide), the mkt value at end of year, and how many shares they own. Put a "*" in (a) if the fund is a party in interest.

so...example

(a)

(b) Total Return Bond Fund

© 1000 shares

(d) 100,000

(e) 125,000

where at end of plan year you have 1,000 shs of bond fund, cost at 100,000, mkt at 125,000

you'll have to add maturity dates, etc if you have any notes in the plan.

Vicki

[WDIK]

(a) {What the heck is this column for???}

The instructions indicate that you should "place an asterisk (*) on the line of each identified person known to be a party-in-interest to the plan."

[Monica Barnard]

I do use Relius govt forms software, but I actually hadn't gotten to trying to enter info yet. Thanks for your help.

[Lori Friedman]

Does anyone actually use Relius' input form for reportable assets? I've found that the input form is difficult and cumbersome to use. Also, the investment list is a part of the financial statements, not a separate and distinct attachment to Schedule H.

[bzorc]

As an auditor, I usually prepare a Schedule of Assets Held for Investment Purposes to be attached to the Form 5500 in the IRS/DOL requested format. Makes things much easier for the filer.

[rcline46]

In a direct question to Ian Dingwall about 3 ASPPA conferences ago, concerning the reporting of mutual funds, reporting of anything other than current value is not required and won't cause an audit. NO ONE keeps the records necessary to do it which is why in self-directed accounts the 5% transaction report is no longer needed. After a few years you just CANNOT know the cost basis due the payouts that have happened.

[Guest BXO]

Does anyone actually use Relius' input form for reportable assets? I've found that the input form is difficult and cumbersome to use. Also, the investment list is a part of the financial statements, not a separate and distinct attachment to Schedule H.

If you mean that all you need to do is attach an audit report (and not a separate and distinct attachment), experience has shown that this will generate a letter from the DOL.

[Lori Friedman]

If you mean that all you need to do is attach an audit report (and not a separate and distinct attachment), experience has shown that this will generate a letter from the DOL.

I'm intrigued by your comment, because that hasn't been our experience at all. We never attach a Line 4i statement to Schedule H -- we simply attach the audit report, which includes the statement -- and none of our clients have received a DOL letter. Your own experience has been very different.

[Guest Lawrenceg]

I concur with BXO about the DOL requesting the Schedule of Assets separate from within the audit report. I had 4 DOL letters for that very reason last year. So this year I had the Schedule of Assets attached to the Schedle H as well as in the Audit Report