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Company President Pleads Guilty to Lying on Form 5500 and Employer Fined for Lying on Form 5500 discuss how a company president and fiduciary misused plan assets and was convicted of filing a false IRS Form 5500:

The court imposed $153,000 in penalties and fines and a one-year term of federal probation upon Thomas. In 2002, Thomas instructed custodian New England Life Insurance Company to issue a check of $200,000 to the plan trustees. The funds were deposited at a bank in the name of the plan. Subsequently, Thomas withdrew funds from the bank account to invest in other business interests. Thomas must have returned the money to the plan because the case summary indicated that the plan did not suffer a loss. The false statement related to question 4d (of Schedule H or I) in which the DOL asks whether the plan has engaged in a prohibited transaction with a party-in-interest. Although the more serious violation was the misuse of plan assets, the government utilized the false statement on the Form 5500 to extract the guilty plea from the company president.

Filing an Incorrect IRS Form 5500 discusses the significant ramifications of filing an incorrect IRS Form 5500.

DOL Proposed Regulation – Amendment of Regulation Relating to Definition of ‘‘Plan Assets’’ Participant Contributions proposes a safe harbor that will consider deposits made within the 7-business day period as if they were made on "the earliest date on which such contributions can reasonably be segregated from the employer's general assets."

Field Assistance Bulletin No. 2008-01 – Fiduciary Responsibility for Collection of Delinquent Contributions provides "guidance to field investigators on the responsibilities of plan fiduciaries and trustees with respect to monitoring and collecting delinquent employer and employee contributions."

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