On the Form 5500 question 8a, code 2R states to check if "Participant directed brokerage accounts as provided as an investment option"

What constitutes these "brokerage" accounts? Does that mean allocated accounts in mutual funds, or simply the ability to invest in stocks?

Thanks,

Ronnie

I take "Participant Directed Brokerage Accounts" to mean any participant directed account that is not part of the normal group of investments offered in the plan. A brokerage account could have mutual funds, stocks, bonds, insurance, etc.

Example: A plan has only has a group of mutual funds for participants to direct their investments, I would NOT use code 2R. If the same plan also allowed a participant to open an account and buy stocks/bonds, then I would use 2R.

This is how I use code 2R. There might be some users that buy the 5500 books that would be willing to respond with a more precise response.

http://benefitslink.com/boards/index.php?showtopic=14861



Try this thread for addt'l disscussion.