Schedule H where to report credit...

[pmacduff]

I'm working on the 2014 Schedule H for a Plan. The investment vendor provided a .05% credit back to participants per the contract. The credit is disclosed to the participants in both the 404(a)(5) information as well as reflected on the participant individual statements. It is also reported separately on the overall plan reporting.

I'm trying to figure out the "best" place on the Sch H to show this credit back to participants. It's not a huge amount. Perhaps "Other income"?

Where would others put this amount on the Sch H?

Thank you in advance....

[ESOP Guy]

Are they returning part of their fees by doing this? If so, would be a reduction of fees?

Does the auditor have an opinion?

If it isn't material other income might work or like I said net against fees also work. I would see if the auditor has an opinion.

[pmacduff]

This is the blurb from the 404a5 notice that would lean me toward net against fees as you mentioned.

"Percentage-based charges*, if applicable, are offset by credits that have been negotiated
by your plan sponsor. As a result, a credit of 0.05% is currently being applied to your account on a pro-rata basis. Any charges and/or credits will appear on your quarterly benefit statements."

Have copious notes, but was hoping to have it on a separate line item to avoid the auditors asking where it was included. Just trying to save time ahead of time