commercial paper and zero coupon bonds. Do not include debt
Code section 401, including, for example, the determination of
securities of governmental units that should be reported on line
top-heavy status under Code section 416 and the vesting
1c(2) or 1c(15).
requirements of Treasury Regulations section 1.411(a)-7(d)(5).
See Q&As 12 and 19 of Treasury Regulations section
‘‘Preferred’’ means any of the above securities that are
1.72(p)-1.
publicly traded on a recognized securities exchange and the
securities have a rating of ‘‘A’’ or above. If the securities are not
The entry on line 1c(8), column (b), of Schedule H
‘‘Preferred,’’ they are listed as ‘‘Other.’’
(participant loans - end of year) or on line 1a, column (b), of
Schedule I (plan assets - end of year) must include the current
Line 1c(4)(A). Include stock issued by corporations (other
value of any participant loan that was reported as a deemed
than employer securities defined in line 1d(1) below) which is
distribution on line 2g for any earlier year if the participant
accompanied by preferential rights such as the right to share in
resumes repayment under the loan during the plan year. In
distributions of earnings at a higher rate or which has general
addition, the amount to be entered on line 2g must be reduced
priority over the common stock of the same entity. Include the
by the amount of the participant loan that was reported as a
value of warrants convertible into preferred stock.
deemed distribution on line 2g for the earlier year.
Line 1c(4)(B). Include any stock (other than employer
securities defined in line 1d(1)) that represents regular
Lines 1c(9), (10), (11), and (12). Enter the total current value
ownership of the corporation and is not accompanied by
of the plan’s or DFE’s interest in DFEs on the appropriate lines
preferential rights. Include the value of warrants convertible into
as of the beginning and end of the plan or DFE year. The value
common stock.
of the plan’s or DFE’s interest in each DFE at the end of the
plan or DFE year must be reported on the Schedule D (Form
Line 1c(5). Include the value of the plan’s participation in a
5500).
partnership or joint venture if the underlying assets of the
partnership or joint venture are not considered to be plan assets
The plan’s or DFE’s interest in common/collective trusts
under 29 CFR 2510.3-101. Do not include the value of a plan’s
!
(CCTs) and pooled separate accounts (PSAs) for which
interest in a partnership or joint venture that is a 103-12
a DFE Form 5500 has not been filed may not be
CAUTION
Investment Entity (103-12 IE). Include the value of a 103-12 IE
included on lines 1c(9) or 1c(10). The plan’s or DFE’s interest in
in line 1c(12).
the underlying assets of such CCTs and PSAs must be
Line 1c(6). Include the current value of both income and
allocated and reported in the appropriate categories on a
non-income producing real property owned by the plan. Do not
line-by-line basis on Part I of the Schedule H.
include the value of property that is employer real property or
Note. For reporting purposes, a separate account that is not
property used in plan operations that must be reported on lines
considered to be holding plan assets pursuant to 29 CFR
1d and 1e, respectively.
2510.3-101(h)(1)(iii) does not constitute a PSA.
Line 1c(7). Enter the current value of all loans made by the
Line 1c(14). Use the same method for determining the value
plan, except participant loans reportable on line 1c(8). Include
of the insurance contracts reported here as you used for line 4
the sum of the value of loans for construction, securities loans,
of Schedule A, or, if line 4 is not required, line 7 of Schedule A.
commercial and/or residential mortgage loans that are not
subject to Code section 72(p) (either by making or participating
Line 1c(15). Include all other investments not includable in
in the loans directly or by purchasing loans originated by a third
lines 1c(1) through (14), such as options, index futures,
party), and other miscellaneous loans.
repurchase agreements, state and municipal securities,
collectibles, and other personal property.
Line 1c(8). Enter the current value of all loans to participants
including residential mortgage loans that are subject to Code
Line 1d(1). An employer security is any security issued by an
section 72(p). Include the sum of the value of the unpaid
employer (including affiliates) of employees covered by the
principal balances, plus accrued but unpaid interest, if any, for
plan. These may include common stocks, preferred stocks,
participant loans made under an individual account plan with
bonds, zero coupon bonds, debentures, convertible debentures,
investment experience segregated for each account, that are
notes and commercial paper.
made in accordance with 29 CFR 2550.408b-1 and secured
Line 1d(2). The term ‘‘employer real property’’ means real
solely by a portion of the participant’s vested accrued benefit.
property (and related personal property) that is leased to an
When applicable, combine this amount with the current value of
employer of employees covered by the plan, or to an affiliate of
any other participant loans. Do not include in column (b) a
such employer. For purposes of determining the time at which a
participant loan that has been deemed distributed during the
plan acquires employer real property for purposes of this line,
plan year under the provisions of Code section 72(p) and
such property shall be deemed to be acquired by the plan on
Treasury Regulations section 1.72(p)-1, if both of the following
the date on which the plan acquires the property or on the date
circumstances apply:
on which the lease to the employer (or affiliate) is entered into,
1. Under the plan, the participant loan is treated as a
whichever is later.
directed investment solely of the participant’s individual
Line 1e. Include the current (not book) value of the buildings
account; and
and other property used in the operation of the plan. Buildings
2. As of the end of the plan year, the participant is not
or other property held as plan investments should be reported
continuing repayment under the loan.
in 1c(6) and 1d(2).
If both of these circumstances apply, report the loan as a
Do not include the value of future pension payments on lines
deemed distribution on line 2g. However, if either of these
1g, h, i, j, or k.
circumstances does not apply, the current value of the
Line 1g. Noncash basis plans must include the total amount
participant loan (including interest accruing thereon after the
of benefit claims that have been processed and approved for
deemed distribution) must be included in column (b) without
payment by the plan. Include welfare plan ‘‘incurred but not
regard to the occurrence of a deemed distribution.
reported’’ (IBNR) benefit claims on this line.
Note. After a participant loan that has been deemed
Line 1h. Noncash basis plans must include the total amount
distributed is reported on line 2g, it is no longer to be reported
of obligations owed by the plan which were incurred in the
as an asset on Schedule H or Schedule I unless, in a later year,
normal operations of the plan and have been approved for
the participant resumes repayment under the loan. However,
payment by the plan but have not been paid.
such a loan (including interest accruing thereon after the
Line 1i. ‘‘Acquisition indebtedness,’’ for debt-financed
deemed distribution) that has not been repaid is still considered
property other than real property, means the outstanding
outstanding for purposes of applying Code section 72(p)(2)(A)
amount of the principal debt incurred:
to determine the maximum amount of subsequent loans. Also,
the deemed distribution is not treated as an actual distribution
1. By the organization in acquiring or improving the
for other purposes, such as the qualification requirements of
property;
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Instructions for Schedule H (Form 5500)