Plan Transactions Greater Than 5%

[Guest Bryan]

If plan assets are invested in a mutual fund and no individual transactions exceed 5% of plan assets, do the total of all transactions for the plan year also have to be less than 5% not to require disclosure in form 5500 27(d)?

[Guest JB2]

It is my understanding that there is no reporting of this requirement for assets held in mutual funds. However, if one of the funds is a money market fund, you would have to report if the aggregate of all the money market transactions exceed 5% of the beginning plan year balance.

[LCARUSI]

JB2 -

I'm curious. Why is a money market mutual fund different than any other mutual fund with respect to the 5% reporting requirements.

[Guest JB2]

The exemption applies to assets reported on line item 31c(11) - 31c(15).

Registered investment companies are reported on line 31c(15).

Money market mutual funds are reported on line 31c(1).