5500 Large Plan - fees

[PFranckowiak]

Large Plan

Revenue Sharing accually gets deposited into the plan.

Fees are then paid out of the plan

1. Fees are more than the Revenue Sharing. Would I show the Revenue Sharing coming in under Other income and the Total Fees coming out.

Say Revunue Sharing is 5,000. Fees are 7,000. Would I show the entire 7,000 on the 5500 as fees and also on the Schedule C or just the Net amount?

2. Say the Revenue Sharing is more than the fees - say it was 10,000. How would that be reflected?

This is the first year we have a plan the actually deposited Revenue Sharing to offset Investment fees and/or Adm fees.

Any suggestions?

Pat

[ACox]

We have been having the same discussions and concluded (until further evidence otherwise) to show the revenue amounts being deposited as other income and then the total fees for the Schedule H. It is my understanding that the Schedule C and Schedule H are not required to match. As for the Schedule C, we have decided to list any direct fees paid by the plan assets and any revenue sharing used to offset invoice in box 2d.

I have not run into any plans that had excess revenue sharing, but I think that you may want to reallocate to participant accounts so there are not un allocated assets in the plan (i.e. forfeiture, cash, etc).

Definately not an expert in this matter, but this is the result of several hours of discussion within our company.