Schedule A for individual life insurance policies

[Guest PC]

In completing the Schedule A for a Form 5500 for a profit sharing plan with individual ancillary life insurance policies for some participants, should I complete Part II which looks very similar to what I completed in the past or Part III since I said that the plan provides welfare benefits in accordance with page 14 of the instructions?

[JohnCheek]

I believe you should be completing Part III, to report a "welfare type" policy.

Part II is to report insurance contracts that are either investments of the plan, or are annuity policies that, in effect, transfer the pension obligation to the insurance company.