Schedule of Delinquent Participant Contributions

[sam2012]

I was curious on thoughts as to how to correctly complete the Schedule H, line 4a attachment-“Schedule of Delinquent Participant Contributions”. There is surprisingly very little instructions on how this attachment should be correctly completed and auditors opinions of how to complete seem to vary.

Should the schedule reflect the status as of plan year end or the filing date?

For example: 5500 filing for 12/31/12 is audited by IQPA and late contributions are discovered for 2012 in 2013. Plan sponsor elects to file VFCP so in June 2013, lost earnings are deposited and VFCP is filed. The 5500 for 12/31/12 is filed in July 2013.

For 2012 attachment, would the late contributions go under “Contributions Not Corrected” or “Contributions Pending Correction in VFCP”?

As of 12/31/12 they technically were “Contributions Not Corrected” but as of filing date they are now pending correction in VFCP. I suppose it does not matter that much, the latter gives greater clarification as to what is going on. If I use the former, I usually add a footnote to the schedule that VFCP was filed.

Would you agree that “Total Fully Corrected under VFCP” should not be used until the letter of “No Action” is received from the DOL?

As lost earnings were not deposited until 2013 the late contributions would have to be reported again on line 41 for 2013 and that attachment if “no action” letter is received then it seems “Total Fully Corrected under VFCP” would be used.

Thanks!

[chc93]

FWIW... in the few times we had this happened for us, the independent audit report provided the schedule... along with schedule of assets and schedule of reportable transactions. We attached those schedules without modifications.