I'm a CPA working on a Form 5500 audit (it's a new account for us). The plan is a defined contribution profit sharing plan that owns four life insurance policies with a total cash surrender value that comprises ~40% of plan assets. Are these contracts required to be reported on Form 5500 at cash value? The plan's TPA says they've never been reported as plan assets because Form 5500 Schedule H Part I states: "Do not enter the value of that portion of an insurance contract which guarantees, during this plan year, to pay a specific dollar benefit at a future date." I'm not too familiar with qualified plans that offer life insurance. I've had a few in the past where the value has been reported but the value was not significant to the plan, so it was never a sticking point with respect to our report.

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Any requirement that participants must be notified that their loans will be defaulted when they terminate employment? I have a large plan whose loans are administered by the recordkeeper. We as a TPA have minimal involvement. We used to send out default letters to the participants, but because the loans are handled by the recordkeeper, we're not going to do that. No such notice is sent out by the recordkeeper, which is deeming the loans as distributed for non-paymentIs a notice legally required?

Safe harbor match formula is 100% on the 1st 3% and 50% on the next 2%. Match is calculated on a per pay basis. Participants elective withholding is 5%. Total Compensation is $286,000. Retirement plan software matched participant 4% of each pay based on the match formula for a total of $11,440 for the year. But isn't the max match permitted for this person $10,800, which is 4% of $270,000? Pretty sure I need to forfeit $640 of match because participant was matched on wages over $270k, but the per pay basis for allocating the match is throwing me off. Any thoughts?