Schedule D and Schedule H

[Below Ground]

Plan is using a "group annuity contract" to provide for individual self-directed accounts. Insurer is a DFE, so each "fund" has a plan number. As I understand, each fund (with value) is reported on Schedule D. When completing Schedule H must you again list each fund separately as an "Asset Held for Investment" or can you simply group PSA values together (like loans or self directed brokerage accounts) for this reporting?

Also... How does use of a "DFE Fund" reduce Schedule H reporting? What is the logic of Schedule D, anyway? It has always seemed to be a waste of paper to me.

Thanks!

[Below Ground]

I think I posted this at a bad time (late Friday), so to get it active again, I am making this "reply". Anyway, any insight on OP would be greatly appreciated. Thanks!

[Lori Friedman]

When completing Schedule H must you again list each fund separately as an "Asset Held for Investment" or can you simply group PSA values together (like loans or self directed brokerage accounts) for this reporting?

In my opinion, the "Schedule of Assets (Held At End of Year)" must provide the detailed information for each item on Schedule H, Line 1c (investment assets), unless the instructions specifically say that the detail isn't required. Examples are plan participant loans and participant-directed brokerage account assets. Also, the schedule attachment discloses information that isn't reported on Schedule D, such as the DFE's cost basis and number of units held.

How does use of a "DFE Fund" reduce Schedule H reporting?

The Form 5500 filer gets to lump all of the income from the DFE -- interest, dividends, realized gains, and unrealized gains -- on Schedule H, Lines 2b(6) - (9). The DFE has already filed its own Form 5500, so the investing plan isn't required to repeat the effort by reporting each type of income separately.

The same's true for registered investment companies -- Schedule H, Line 2b(10) -- but for different reasons.

[Below Ground]

Lori,

Thanks for your reply.

I note that since these funds are held in accounts that the participant controls the investment, there is no reporting of cost. Also since many of these funds under a PSA are "mirror funds" of mutual funds, I think they would be lumped together regardless of DFE application.

Again, thanks for your reply. I guess I am frustrated about "paperwork reduction".