How to report loans on Form 5500

[KevinMc]

If I have a client with $500,000 in their 401-k with $50,000 in outstanding participant loans, is the ending balance reported as $500,000 or $550,000? Also, I know the loan is reported on the Schedule I, but is there anywhere on the Form 5500 itself the outstanding loans are reported as well as loan payments made during the plan year?

Any help would be appreciated.

[WDIK]

The $50,000 of loans is a plan asset and should be included in the plan's assets as reported on Schedule I. (Lines 1a and 1b) The interest portion of the loan payments will show as income on the Schedule I as well. (Line 2c)

Line 3e will show the total ending value of the participant loans.

[BG5150]

Just be careful when you look at the reports from the asset custodian. Depending on the product, some companies track loans and include them in the balances. Some do not. So I would check to see if that $500,000 already includes the loan balances...