Schedule H Listing of Plan Assets

[Nancy D]

Hi all,

We took over administration of a plan in late 2016, prior TPA doing 2016 administration.  This TPA listed all plan investments as "Mutual Funds" both on Schedule H and on Schedule of Assets for line 4i.  Auditor has correctly identified all assets as Pooled Separate Accounts.  Should 5500 for 2016 be filed showing correct information at 2016 Year end ( all assets in Mutual Fund at beginning of year and PSA at end of year)?  Do amended returns need to be filed for prior years?  Should I get a life and stop worrying about things like this? 

Thanks for any help.  

[ESOP Guy]

If it was me I would not amend.  I would put it on the correct line in the current year and then stop worrying about things like this.  I simply have never seen an IRS or DOL audit that gets worked up over the wrong line as long as all the assets are there. 

[Nancy D]

Thanks ESOP Guy.  I appreciate your help! 

[RatherBeGolfing]

I wouldn't amend, just move it to the line the auditor wants.

As a side note, I have one auditor from a large CPA firm that does tons of audits, who insists that the correct line item on the Sch H is "Mutual Funds" rather than "PSA" for a platform type plan.  They claim that because then underlying assets in the PSAs are mutual funds, the correct line item is mutual funds rather than PSAs.  The first year they audited, we shifted the assets from PSA to mutual funds.  All my other similar plans with other auditors use the line for PSA.

[Nancy D]

Thanks RatherBeGolfing. 

[AlbanyConsultant]

This year, I have different auditors from the same firm reporting assets at the same RK platform product on different lines.  I pointed it out, and each insisted the other is wrong. *shrug*

[Phillip M]

I know this is an old topic, but both Mass Mutual and John Hancock

1) call the investments pooled separaye accounts (PSA's),
2) instruct the preparer list the PSA's individually on the the Schedule D Form 5500
3) but then instruct the preparer to report the investment in mutual funds and their income loss as gain or losses on mutual funds on the Sched H.

This makes no sense to me and not knowing which is correct causes a significant problem for financial statement purposes, because the two types of investments require very different disclosures for financial statement footnote purposes. 

Does anyone have better updated information about this situation?