Insurance policies and the premium payments on 5500

[Alex Daisy]

I am the TPA on a 401(k) Plan that has life insurance policies and the premium payments are paid directly from the life insurance policy holders 401(k) participant account.

How should these premium payments be reflected on the 5500?

The Plan Auditor is telling me the change in value is netted against the premiums paid and is reported on line 2b(5)(b) on the Schedule H.

Any help is greatly appreciated.

[Bird]

For whole life or other policies that have cash values, I agree with the auditor. Premium payments are effectively a transfer from one investment to another.

Term would show up as an expense.

[Alex Daisy]

Thank you very much.