Schedule A vs. Schedule C: TPA Compensation

[ldr]

Good afternoon to all:

From a colleague in my office:

"Requesting advice regarding completion of Schedules A and C for large plans using a John Hancock style (insurance) product. We believe that Commissions to Insurance Agents and TPA Fees deducted from plan assets (Distribution and loan fees) are reported on Schedule A. Revenue Sharing (Forum Compensation) could be reported on the A or C and if reported on the A then it would be left off the C. Any thoughts on this? "

Thank you as always for any advice.

[Lou S.]

They might get reported on both Schedule A and Schedule C depending on what is being reported.

[ldr]

HI Lou S.,

Thanks for the response but it doesn't quite answer the question.  He is specifically concerned about revenue sharing income.  For most of our clients, we receive less than $5,000, it's for plans that file the 5500-SF, so it's a moot point.  However, we do have a few with over 100 participants who have to file the full blown 5500 with the attachments, and he's trying to figure out, for this one where the revenue sharing is over $5,000, how to report it correctly.

What are the rest of you doing in these cases?

Thank you as always.

 

 

[msmith]

We report Commissions and Revenue Sharing (if any) on the Schedule A. Any fees paid for distributions and loans are reported on Schedule C. Schedule C is also used to report any Plan paid expenses (to TPA or CPA Audit fees).

Janice Wegesin has had multiple webcasts regarding the completion of Schedule A and C, with great examples. If you have John Hancock access, you can review the webcasts on their website. 

 

[ldr]

Thank you VERY much!  We watch the new, current John Hancock webcasts and were not aware of a library of past webcasts.  

This gets us through the current question and in the meantime we can get better educated on Schedules A and C.

Have a great day!