Schedule of Assets (held at the end of the year) - include clearing cash?

[John ATL]

I've always seen interest-bearing cash included in the schedule, but something recently made me question whether it should be in the case where the balance is for clearing transactions only and is not a participant-directed or -selectable option.  I cannot find a formal definition of "investment assets" or "assets held for investment" and whether that might be to the exclusion of such an account.  Still leaning towards including it.

[Paul I]

I suggest asking a simple question - Who owns the account that is holding the interest-bearing cash?  If it is the Trustee of the plan, then it is an asset of the plan.  Otherwise, it is not an asset of the plan.

[John ATL]

Definitely an asset of the plan- just not sure if it is "held for investment purposes," which is the verbiage in the instructions for the schedule.  I'm probably being too literal (CPA, auditor, 'nuff said).  I'm really just playing devil's advocate here, and I fully intend to continue reporting it- was just wondering if anyone would have a contrary view at all.

Thanks for the input!

[Paul I]

The nuance on the use of investment as an adjective to modify purposes easily can be argued, particularly if we consider it from point of view of the plan versus the point of view of the participant.  From the point of view of the plan, it is an investment and is earning income (which you should reasonably ask what happens to that income).  From the point of view of a participant,  it is not an investment in the sense that the participant cannot elect to direct the investment of the participant's account into the interest-bearing account, but it could be considered if the participant receives some of the interest earned in that account.

Sometimes its entertaining to contemplate our navels, or as a motivational speaker may say, engage in a thought exercise.

[John ATL]

I prefer Gedankenexperiment!