Schedule A needed here?

[AdKu]

Do I have to attach schedule A when a retirement plan trust is not funded using insurance contracts but the investment is held in the insurance company other financial products?

Facts:

Retirement Plan A invest portion of the plan trust in Principal Real Estate.

The parent Company - Principal Life Insurance Company issued Schedule A to Retirement Plan A .

In Part I  of this schedule A is shown Zero person covered in the insurance contract. In Part II Line 5 under separate accounts provided the current value of plan's interest at year end. 

 

Challenge:

Unfortunately, I can’t enter a value for separate account under schedule H Line 1c(10)(b) unless I attached schedule A.

In order to attach schedule A I must first tell on the main form 5500 that there will be schedule A attached by marking box 9a1,9b1,  and 10b3.

 

[CuseFan]

ok, so attach Sched A and report properly, why the reluctance?

[AdKu]

I just want to make sure I'm doing the right thing because the plan is not funded via insurance contract.

[Peter Gulia]

AdKu, your description of how someone drafted a Schedule A suggests the drafter might believe there is an insurance contract.

An insurance company's separate account relates to a specified set of insurance contracts with provisions that refer to the separate account.  Most often, an insurance company's separate account relates to a life insurance contract or annuity contract.

Many retirement plans hold some kinds of investments in the form of an annuity contract, even when the plan's fiduciary intends never to use the contract holder's right to get an annuity payout.

 

[AdKu]

 

So, the plan is required attaching the schedule A if it has Annuity Contract with the Principal (see below). Correct?

[Bill Presson]

Generally if the insurance company sends you the Schedule A, you need to include it.