Preparation of Form 5500

[Gary]

Curious to know what people do in practice.

Regarding year-end plan assets for form 5500 reporting do you allow a client to provide the amount of plan assets or do you require that the client also provide brokerage statements, etc. to support the values they report?

Thanks.

[WDIK]

We will accept a statement from the client, provided there is enough detail to accurately complete the form.

[John Feldt ERPA CPC QPA]

Statements.

[Andy the Actuary]

Will accept information under client's name but then assess reasonableness. Issue -- well, at least it used to be an issue -- was postulating appropriate investment assumtions if you're unsure how money is invested. If in doubt, ask. More of a problem is on one-person plans. Irrespective of what you request, the client may send a final month summary, year end evalution, or even a year-to-date evaluation that does not allow appropriate response to the question on the EZ: amounts received other than contributions (exclude unrealized amounts).

[SoCalActuary]

It is the duty of the plan trustee to provide the asset statement. They can hire competent people to perform that duty, including corporate trustee, accountant, financial advisor, or TPA. But the trustee still has the bottom line responsibility.

Why would you second-guess them, unless you believe they are mistaken, or unless you are paid to take that responsibility?

Now, if the client gives you an asset value of 3 partnerships, each rounded to the nearest $1million, then you have reason to argue. If you see that a large asset purchase was made, but no asset value was provided, then you also have reason to argue.

By the way, why is this a DB Forum question?