Schedule C for a Non-Trust Filing if Non-monetary Funds to Report?

[5500Nerd]

Hello Everyone, I have been informed that the Schedule C can be used for a large plan that is not under a trust if there are non-monetary funds/commissions to a broker of a $100 or more. I have always felt a Schedule C can only be  used for a funded/trust filing. What are your thoughts? Is there any official written instructions on this? Many thanks! 

[Sabrina1]

I'll assume you're referring to a large health and welfare plan that is either unfunded, fully insured, or a combination of unfunded/fully insured?  Yes, there is a blurb hidden in the 2023 Schedule C instructions, bottom of page 25, first column, that refers you to 29 CFR 2520.104-44:

"Health and welfare plans that meet the conditions of the limited exemption at 29 CFR 2520.104-44 or Technical Release 92-01 are not required to complete and file a Schedule C."

If you go to the reference, https://www.law.cornell.edu/cfr/text/29/2520.104-44, you will find that health and welfare plans that are fully insured, unfunded, or a combination of fully insured/unfunded, are not required to complete and file a Schedule C.  I guess you still can if you want to.   But not required.  With that being said, I've seen many welfare plans that are exempt attach a Schedule C when they aren't required.  I assume they don't look into what the limited exemption means.  The DOL could certainly put this instruction into plain English and then more plan sponsors/practitioners would be aware.

Agree with you in that funded/trust plans have no such exemption to attach Schedule C, so therefore must file.  

 

 

[5500Nerd]

I thank you greatly. And yes you are correct. This is for health and welfare plans that are unfunded. I am beside myself because I was told that they are to file a Schedule C for indirect compensation if over $100 but I have not found any back up to support this position. Thanks again for your feedback.