Qualifying Plan Assets

[Guest Annette Leerhoff]

Are loans (other than participant) qualifying plan assets for the audit waiver requirement? The loans are real estate loans.

Thank you,

Annette Leerhoff

[PensionPro]

Only if they are in the individual account of a participant or beneficiary over which the participant or beneficiary has the opportunity to exercise control and with respect to which the participant or beneficiary is furnished, at least annually, a statement from a regulated financial institution describing the assets held (or issued by) such institution.

[Guest Annette Leerhoff]

Thank you for your response. Since the loans are outside the individual participant accounts, should we list the Real Estate Loans as part of the SAR enhanced disclosure? From my research materials, it appears we should not.

FYI - The employer has 95% of qualifying assets in participant directed accounts; therefore, the employer meets the audit waiver requirement.