Cheek

Cheek, CPA:

Minor Changes Reflected on 2001 Form 5500

01/24/02 The U. S. Department of Labor's Pension and Welfare Benefits Administration (PWBA), the Internal Revenue Service and the Pension Benefit Guaranty Corporation today released information copies of the Form 5500 return/reports, schedules and instructions to be used by employee benefit plans for plan year 2001 filings.

Both the Form 5500 and 5500-EZ for plan year 2001 are essentially unchanged from 2000. Certain changes were made to reflect changes in the law or regulations, to improve forms processing and to clarify the instructions. These include, among other things:

· Addition of a new line item on Schedule I to address the new conditions certain small pension plans must comply with to continue to be eligible for the waiver of the general ERISA requirement that plans be audited annually by an independent qualified public accountant;

· Addition of a new line item on Schedule E regarding payment in redemption of stock held by an ESOP to terminating participants;

· Addition of several new business activity codes (for plan sponsors that are labor unions or governmental entities) and new pension feature codes (for ESOPs and participant-brokerage accounts under DC plans) and

· New Form 5500 instructions regarding alternative financial reporting for participant-directed brokerage accounts. This is interesting-- you will have the option to continue reporting these investments by asset category (old method) or to report the entire asset value on one line (1c(15)), and the entire income/loss on one line. Loans, partnerships, joint ventures, real property, employer securities, and leveraged investments require more detail.

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