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What disclosure is required if the IQPA determines that the Line 4a information is

not presented in accordance with DOL’s regulatory requirements?

As with any other information required to be presented on supplemental schedules, when the

auditor concludes that the scheduled information required by Line 4a does not contain all the

required information or contains information that is inaccurate or is inconsistent with the

plan’s financial statements, the auditor must consider, depending on the nature of the problem

and the type of information, either modifying his or her report by adding a paragraph to

disclose the omission of the information, or expressing a qualified or an adverse opinion on the

supplemental schedules, as appropriate. See AICPA Audit and Accounting Guide for

Audits of Employee Benefit Plans at paragraphs 13.09 through 13.19.

Must all delinquent participant contributions be reported on Line 4a or only those

that are nonexempt prohibited transactions?

Schedule H and Schedule I filers must report all delinquent participant contributions for the

plan year on Line 4a regardless of whether they have been corrected under the VFCP and the

conditions of PTE 2002-51 have been satisfied.

Must delinquent participant contributions continue to be reported on Line 4a for

every year until they are corrected?

If participant contributions were transmitted to the plan late during Year 1, and the violation

was not corrected until sometime during Year 2, the total amount of the delinquent

contributions should be included on Line 4a of the Schedule H or I for Year 1 and should be

carried over and reported again on Line 4a of the Schedule H or I for each subsequent year

until the year after the violation is corrected.

Are there any circumstances where delinquent participant contributions still

should be reported on Line 4d or Schedule G?

Delinquent participant contributions must be reported on Line 4a and should not be reported

on Line 4d or Schedule G.

What prohibited transactions result from an employer being delinquent in

forwarding participant contributions to the plan?

With respect to the prohibited transaction provisions of ERISA section 406, the employer of

employees covered by the plan is a party in interest with respect to the plan under ERISA

section 3(14)(C). The failure to segregate and forward participant contributions to a plan from

the general assets of the employer in the time frames prescribed by 29 CFR § 2510.3-102

would result in a prohibited use of plan assets in violation of section 406(a)(1)(D) of ERISA.

Similarly, because an employer who retains plan assets commingled with it general assets

would be a fiduciary with respect to those assets pursuant to ERISA section 3(21)(A)(i), any

Faqs About Reporting Delinquent Participant Contributions On The Form 5500 - U.s. Department Of Labor Page 4