austin3515 Posted July 7, 2011 Posted July 7, 2011 Two plans merge as of 12/31/2010, "Plan Continuing" and "Plan Eliminated". The auditor wants to report ALL investment types as zero (so no mutual funds, etc). But how should I report the schedule A? I'm having a hard time justifying not preparing the A based on the info provided by the insurance company, including reporting an ending balance. The contract itself will actually continue, it will just be re-registered in the name of Plan Continuing. But of course it looks odd to say "no ending balance" on the H and then an Ending balance on the A. Austin Powers, CPA, QPA, ERPA
ETA Consulting LLC Posted July 8, 2011 Posted July 8, 2011 I agree it "looks" odd, but is obvious. Would it actually error out when you submit it? If not, I would not sweat it. Just to ensure my thought processes are correct, the zero balance on the Schedule H of the terminating plan is by result of the total amount being entered on the 'transferred out' line. This amount includes the Insurance Balance; and all those totals are included in the ending balances on the Schedule H of the continuing plan. So, the Schedule A is the only hold out, and does not have a transfer line. Good Luck! CPC, QPA, QKA, TGPC, ERPA
austin3515 Posted July 8, 2011 Author Posted July 8, 2011 Yes, I think you do see my dillemma... One nice thing about audited plans is you can ask the auditor what they want you to do. Ask three different auditors a question like this, you'll get three different answers... Of course, that's because the DOL has never answered it, nothing against auditors (I'm a past one myself!) Austin Powers, CPA, QPA, ERPA
ETA Consulting LLC Posted July 8, 2011 Posted July 8, 2011 Ask three different auditors a question like this, you'll get three different answers... Typically, when I ask three different auditors a question like this, I get four different answers. CPC, QPA, QKA, TGPC, ERPA
austin3515 Posted July 8, 2011 Author Posted July 8, 2011 Bravo, ERISAToolKit, Bravo... LOL Austin Powers, CPA, QPA, ERPA
Guest Dell Posted July 12, 2011 Posted July 12, 2011 Ouch!, you guys are tough. From the audit perspective, assuming the continuing plan legally assumed all assets and liabilities of the merging plan on the effective date, the merging plan has zeros for everything on Sch H with a transfer out as stated above. Actual physical transfers usually happen a little later. If all assets and liabilities were assumed by the contining plan, I can see reporting zero on the Sch A as well, actually I thought there was an edit check to the Sch H for this. I guess you'd have to use one of the "other" lines to show the transfer out on Sch A. My $.02 is I'd rather tie-out to the Sch H than worry about the amounts the insurance company provided in a case like this. Now you only need 3 different auditors to chime in!
austin3515 Posted July 12, 2011 Author Posted July 12, 2011 Not sure if I still count as an auditor, but that is how I did it So maybe we only neeed two more auditors... Austin Powers, CPA, QPA, ERPA
GMK Posted July 12, 2011 Posted July 12, 2011 So maybe we only neeed two more auditors... when I ask three different auditors Looks like you only need one more. ... but maybe one with 3 different answers. Is that possible?
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