Table of Contents
Code section references are to the Internal Revenue Code unless otherwise noted. ERISA refers to the Employee Retirement Income Security Act of 1974.
Lines A, B, C, and D. top This information must be the same as reported in Part II of the Form 5500 to which this Schedule G is attached.
Do not use a social security number in Line D in lieu of an EIN. The Schedule G and its attachments are open to public inspection, and the contents are public information and are subject to publication on the internet. Because of privacy concerns, the inclusion of a social security number or any portion thereof on this Schedule G or any of its attachments may result in the rejection of the filing.
You can apply for an EIN from the IRS online, by telephone, by fax, or by mail depending on how soon you need to use the EIN. For more information, see Section 3: Electronic Filing Requirement under General Instructions to Form 5500. The EBSA does not issue EINs.
List all loans or fixed income obligations in default or determined
to be uncollectible as of the end of the plan year or the fiscal year
of the GIA, MTIA, or 103-12 IE. Include:
Note. Identify in element (a) each obligor known to be a party-in-interest to the plan.
Provide, on a separate attachment, an explanation of what steps have been taken or will be taken to collect overdue amounts for each loan listed and label the attachment "Schedule G, Part I - Overdue Loan Explanation."
The due date, payment amount, and conditions for determining default in the case of a note or loan are usually contained in the documents establishing the note or loan. A loan is in default when the borrower is unable to pay the obligation upon maturity. Obligations that require periodic repayment can default at any time. Generally loans and fixed income obligations are considered uncollectible when payment has not been made and there is little probability that payment will be made. A fixed income obligation has a fixed maturity date at a specified interest rate.
Do not report in Part I participant loans under an individual account plan with investment experience segregated for each account, that are made in accordance with 29 CFR 2550.408b-1, and that are secured solely by a portion of the participant's vested accrued benefit. Report all other participant loans in default or classified as uncollectible on Part I, and list each such loan individually.
List any leases in default or classified as uncollectible. A lease
is an agreement conveying the right to use property, plant, or
equipment for a stated period. A lease is in default when the required
payment(s) has not been made. An uncollectible lease is one where the
required payments have not been made and for which there is little
probability that payment will be made. Provide, on a separate
attachment, an explanation of what steps have been taken or will be
taken to collect overdue amounts for each lease listed and label the
attachment "Schedule G, Part II -
Overdue Lease Explanation."
All nonexempt party-in-interest transactions must be reported,
regardless of whether disclosed in the accountant's report, unless the
nonexempt transaction is:
Nonexempt transactions with a party-in-interest include any
direct or indirect:
Caution! An unfunded, fully insured, or combination unfunded/insured welfare plan with 100 or more participants exempt under 29 CFR 2520.104-44 from completing Schedule H must still complete Schedule G, Part III, to report nonexempt transactions.
A plan that is required to file a Form M-1, Report for Multiple-Employer Welfare Arrangements (MEWAs) and Certain Entities Claiming Exception (ECEs), but that is not required to file the Schedule I because it has fewer than 100 participants and meets the requirements of 29 CFR 2520.104-44, also must complete Schedule G, Part III, to report nonexempt transactions.
If you are unsure whether a transaction is exempt or not, you should consult with either the plan's independent qualified public accountant or legal counsel or both.
You may indicate that an application for an administrative exemption is pending.
If the plan is a qualified pension plan and a nonexempt prohibited
transaction occurred with respect to a disqualified person, an IRS Form 5330,
Return of Excise Taxes Related to Employee Benefit Plans, is required
to be filed with the IRS to pay the excise tax on the transaction.
TIP. The DOL Voluntary Fiduciary Correction Program (VFCP) describes how to apply, the specific transactions covered (which transactions include delinquent participation contributions to pension and welfare plans), and acceptable methods for correcting violations. In addition, applicants that satisfy both the VFCP requirements and the conditions of Prohibited Transaction Exemption (PTE) 2002-51 are eligible for immediate relief from payment of certain prohibited excise taxes for certain corrected transactions, and are also relieved from the obligation to file the Form 5330 with the IRS. For more information, see 71 Fed. Reg. 20261 (Apr. 19, 2006) and 71 Fed. Reg. 20135 (Apr. 19, 2006). If conditions of PTE 2002-51 are satisfied, corrected transactions should be treated as exempt under Code section 4975(c) for the purposes of answering Schedule G, Part III. Information about the VFCP is also available on the internet at www.dol.gov/ebsa.