Instructions For Schedule H (Form 5500) - Financial Information

because they satisfy the DOL voluntary fiduciary correction

plan years, one of which is a short plan year of seven (7)

program (VFCP) requirements and the conditions of prohibited

months or fewer. The Form 5500 for the first of the two (2)

transaction exemption (PTE) 2002-51 do not need to be treated

years must be complete and accurate, with all required

as part of the schedule of nonexempt party-in-interest

attachments, except for the IQPA’s report, including an

transactions.

attachment explaining why one of the two (2) plan years is of

seven (7) or fewer months duration and stating that the annual

If the required IQPA’s report is not attached to the Form

report for the immediately following plan year will include a

5500, the filing is subject to rejection as incomplete and

report of an IQPA with respect to the financial statements and

penalties may be assessed.

accompanying schedules for both of the two (2) plan years. The

Lines 3a(1) through 3a(4). These boxes identify the type of

Form 5500 for the second year must include: (a) financial

opinion offered by the accountant.

schedules and statements for both plan years; (b) a report of an

Line 3a(1). Check if an unqualified opinion was issued.

IQPA with respect to the financial schedules and statements for

Generally, an unqualified opinion is issued when the IQPA

each of the two (2) plan years (regardless of the number of

concludes that the plan’s financial statements present fairly, in

participants covered at the beginning of each plan year); and

all material respects, the financial status of the plan as of the

end of the period audited and the changes in its financial status

unaudited financial information submitted with the first Form

for the period under audit in conformity with generally accepted

5500 and the audited financial information submitted with the

accounting principles (GAAP) or an other comprehensive basis

second Form 5500. See 29 CFR 2520.104-50.

of accounting (OCBOA), e.g., cash basis.

Note. Do not check the box on line 3d(2) if the Form 5500 is

Line 3a(2). Check if a qualified opinion was issued. Generally,

filed for a 103-12 IE or a GIA. A deferral of the IQPA’s opinion is

a qualified opinion is issued by an IQPA when the plan’s

not permitted for a 103-12 IE or a GIA. If an E or G is entered

financial statements present fairly, in all material respects, the

on Form 5500, Part I, line A(4), an IQPA’s opinion must be

financial status of the plan as of the end of the audit period and

attached to the Form 5500 and the type of opinion must be

the changes in its financial status for the period under audit in

reported on Schedule H, line 3a.

conformity with GAAP or OCBOA, except for the effects of one

Lines 4a through 4n. Plans completing Schedule H must

or more matters described in the opinion.

answer all these lines either ‘‘Yes’’ or ‘‘No.’’ Do not leave any

Line 3a(3). Check if a disclaimer of opinion was issued. A

answer blank, unless otherwise directed. For lines 4a through

disclaimer of opinion is issued when the IQPA does not express

4h and line 4l, if the answer is “Yes,” an amount must be

an opinion on the financial statements because he or she has

entered.

not performed an audit sufficient in scope to enable him or her

Report investments in CCTs, PSAs, MTIAs, and 103-12 IEs,

to form an opinion on the financial statements.

but not the investments made by these entities. Plans with all of

Line 3a(4). Check if the plan received an adverse

their funds held in a master trust should check ‘‘No’’ on line 4b,

accountant’s opinion. Generally, an adverse opinion is issued

4c, 4i, and 4j. CCTs and PSAs do not complete Part IV. MTIAs,

by an IQPA when the plan’s financial statements do not present

103-12 IEs, and GIAs do not complete lines 4a, 4e, 4f, 4g, 4h,

fairly, in all material respects, the financial status of the plan as

4k, 4m, or 4n. 103-12 IEs also do not complete line 4j and 4l.

of the end of the audit period and the changes in its financial

MTIAs also do not complete line 4l.

status for the period under audit in conformity with GAAP or

Line 4a. Amounts paid by a participant or beneficiary to an

OCBOA.

employer and/or withheld by an employer for contribution to the

Line 3b. Check “Yes” if a box is checked on line 3a and the

plan are participant contributions that become plan assets as of

only limitation on the scope of the plan’s audit was pursuant to

the earliest date on which such contributions can reasonably be

DOL regulations 29 CFR 2520.103-8 and 2520.103-12(d)

segregated from the employer’s general assets (see 29 CFR

because the examination and report of an IQPA did not extend

2510.3-102). Plans that check “Yes” must enter the aggregate

to: (a) statements or information regarding assets held by a

amount of all late contributions for the year. The total amount of

bank, similar institution or insurance carrier that is regulated

the delinquent contributions should be included on line 4a of the

and supervised and subject to periodic examination by a state

Schedule H or I, as applicable, for the year in which the

or federal agency provided that the statements or information

contributions were delinquent and should be carried over and

are prepared by and certified to by the bank or similar institution

reported again on line 4a of the Schedule H or I, as applicable,

or an insurance carrier, or (b) information included with the

for each subsequent year until the year after the violation has

Form 5500 filed for a 103-12 IE. The term ‘‘similar institution’’ as

been fully corrected, which correction includes payment of the

used here does not extend to securities brokerage firms (see

late contributions and reimbursement of the plan for lost

DOL Advisory Opinion 93-21A). See 29 CFR 2520.103-8 and

earnings or profits. If no participant contributions were received

2520.103-12(d).

or withheld by the employer during the plan year, answer ‘‘No.’’

An employer holding these assets after that date

Check “No” if the scope of the plan’s audit was limited

commingled with its general assets will have engaged in a

for any reason in addition to that pursuant to DOL

prohibited use of plan assets (see ERISA section 406). If such a

regulations 29 CFR 2520.103-8 and 2520.103-12.

CAUTION

nonexempt prohibited transaction occurred with respect to a

Note. These regulations do not exempt the plan administrator

disqualified person (see Code section 4975(e)(2)), file IRS

from engaging an IQPA or from attaching the IQPA’s report to

Form 5330, Return of Excise Taxes Related to Employee

the Form 5500. If you check line 3b, you must also check the

Benefit Plans, with the IRS to pay any applicable excise tax on

appropriate box on line 3a to identify the type of opinion offered

the transaction.

by the IQPA.

Participant loan repayments paid to and/or withheld by an

Line 3c. Enter the name and EIN of the accountant (or

employer for purposes of transmittal to the plan that were not

transmitted to the plan in a timely fashion must be reported

accounting firm) in the space provided on line 3c. Do not use a

either on line 4a in accordance with the reporting requirements

social security number in lieu of an EIN. The Schedule H is

that apply to delinquent participant contributions or on line 4d.

open to public inspection, and the contents are public

See Advisory Opinion 2002-02A, available at

information and are subject to publication on the Internet.

Because of privacy concerns, the inclusion of a social security

number on this Schedule H may result in the rejection of the

Delinquent participant contributions reported on line 4a

filing.

TIP

should be treated as part of the separate schedules

Line 3d(1). Check this box only if the Schedule H is being

referenced in ERISA section 103(a)(3)(A) and 29 CFR

filed for a CCT, PSA, or MTIA.

2520.103-1(b) and 2520.103-2(b) for purposes of preparing the

Line 3d(2). Check this box if the plan has elected to defer

IQPA’s opinion described on line 3 even though they are no

attaching the IQPA’s opinion for the first of two (2) consecutive

longer required to be listed on Part III of the Schedule G. If the

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Instructions for Schedule H (Form 5500)

Instructions For Schedule H (Form 5500) - Financial Information - 2009 Page 5

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