Schedule R - Form 5500 Part I Line 3

[AdKu]

I haven't seen any number for some of Schedule R - Part I - Line 3 that I have reviewed.

Is there any reason why pension practitioners don't enter the number on this line 3?

 

Below is the excerpt from Schedule R- Form 5500 Instructions           

Part I – Distributions

Line 3. Enter the number of living or deceased participants whose benefits under the plan were distributed during the plan year in the form of a single sum distribution. For this purpose, a distribution of a participant's benefits will not fail to be a single-sum distribution merely because, after the date of the distribution, the plan makes a supplemental distribution as a result of earnings or other adjustments made after the date of the single-sum distribution. Also include any participants whose benefits were distributed in the form of a direct rollover to the trustee or custodian of a qualified plan or individual retirement account.

[Belgarath]

Kind of hard to venture any opinion without knowing the specifics of the plans you are talking about. That line isn't completed for PS plans, which are the bulk of the plans out there these days.

Are you talking about pension plans, that did in fact pay lump sum distributions?

[AdKu]

No, I was not talking about pension plans (known also as defined benefit/cash balance plans)

To clarify, I was talking about a 401(k) profit sharing plan.

Did I miss part of the instruction that will tell me that line isn't completed for PS Plan

Thank you for your answer.

[Belgarath]

Maybe not on the instructions, but on the form itself. From the Schedule R itself (I didn't bold it, it is bold on the form): 

Profit-sharing plans, ESOPs, and stock bonus plans, skip line 3.

[AdKu]

Thank you Belgarath!

Is this safe to think the word "Profit-sharing plans' encompasses profit sharing plans that allow salary deferrals (in other words 401(k) profit sharing plans)?

 

[Belgarath]

Yes.

[AdKu]

Many thanks!