Notes on Sample OGE Form 450

Entries are marked "S" for spouse, "J" for joint and "D" for dependent child. If there is no letter, we assume that the entry belongs to the filer. The lines on the Sample OGE Form 450 are numbered for reference to these Notes. You do not need to number the lines of your Report. We use the following organization for Part I and recommend it for your use: salaries, pensions, IRAs, annuities, mutual funds, stocks, bonds, insurance, property, miscellaneous, estates, and trusts. Within each category, you are listed first, then your spouse, then your dependent child. More than one type of asset is sometimes discussed on one line to save space.

Part I. Assets and Income

1. Your non-government SALARY, over $200 in income, provided by closely held company. For partnerships, closely held companies and small business ventures that are not publicly traded, you have to provide the name, location, and description of its activity. Also note that your position with the company is reported in Part III. If you take your compensation from an S corporation as dividends rather than salary, report "shares" as the income. Do not report your government salary.

2. Spouse's salary, provided by closely held company, over $1000 in income. See Note 1 for additional information. Note that your spouse's position with the company is NOT reported in Part III, as only YOUR positions are reported in that Part. Do not report your dependent children's earned income.

3. Your PENSION with GE. For pension plans, you must report the name of the company, and if you cannot control the plan's investments, indicate "no control." These are defined benefit plans. When you can't control the investments, you don't have to report them. See the Definitions Section of these Notes for further explanation. When you are not yet receiving payments, indicate "None" in the income block. Because you are receiving payments over $200, indicate "pension payment." Note that the pension is also reported in Part IV. Do not report any government retirement plan, TSP or Social Security benefits. See Note 4 for another type of pension.

4. Your pension with IBM. This is a defined contribution plan, which means that you can select the investment option or control the investments in your account, which means that you must report the account's holdings. Report the name of the company, the name of an independent manager, if any, the investment option you select, such as growth, and any selected investments, such as mutual funds or other investments. Do not indicate that you are receiving payments from this type of pension, as they are really withdrawals of your previous investment and are not income. Also report the pension in Part IV. See Note 3 for another kind of pension.

401(k) plans, 403(b) plans, and SEPs (simplified employee pension plans), are established by private employers for their employees and offer a limited number of investment options. Report the name of the employer, the type of plan (e.g., 401(k)), and the investment option(s) in which the plan is invested. The investment options are your account's holdings and have to be reported.

5. Your IRA account. See the Definitions Section of these Notes for further explanation. You must report the IRA's holdings, e.g., MUTUAL FUNDS. For publicly available mutual funds, identify the general family fund name, here Franklin, and the name of the specific fund, here Equity. You do not need to report money market or certificate of deposit IRAs. Keogh plans (HR-10), for self-employed individuals, are comparable to IRAs.

6. Spouse's IRA account. This is a DIRECTED ACCOUNT with a brokerage firm, so you must report the account's holdings. These accounts may have different names, including brokerage and portfolio. Even if you allow your broker to make all the decisions, you still have the ability to control your account's holdings, so you need to report them. If the holdings are numerous, you may want to provide a broker's statement tracking the year's holdings, and white out the account number and the values. If the holdings are few, you could list them on the line on which you identify the directed account, or provide a separate typed list.

7. Your ANNUITY. See the Definitions Section of these Notes for further explanation. For an annuity, you must report the full name and whether it is fixed or variable. If it is variable, you have to report your annuity's holdings. See Note 6 for how to report holdings.

8. Dependent child's annuity. As it is fixed, you only need to report the full name.

9. Your MUTUAL FUND. For publicly available mutual funds, identify the general family fund name, here Dreyfus Premier, and the name of the specific fund, here Capital Growth. You do not need to report money market mutual funds.

10. Spouse's CASH OR ASSET MANAGEMENT ACCOUNT. This account often contains assets other than just cash, such as a margin account, which is actually your liability, and various funds. It is not considered a mutual fund. Therefore, you have to report the various holdings of this type of account. If you have a margin account that meets the criteria for reporting in Part II, you also have to report it there. See Note 6 for how to report holdings.

11. Dependent child's STOCK in GM. Identify the company and the fact that the asset is stock. Report dividends over $200 as income. Because the stock was sold, mark "X," and report the increase in value as capital gain type of income.

12. Your BOND. Give enough information to identify the source of the bond and its purpose.

13. Your LIFE INSURANCE policy. Do not report term life insurance policies. For cash value life insurance policies, you must report the name of the insurance company and the type of policy. For whole life and universal policies, just report which one it is. See the Definitions Section of these Notes for further explanation.

14. Spouse's variable life insurance policy. For variable policies, you must report the name of the insurance company, that the policy is variable, and the policy's holdings. See Note 6 for how to report holdings.

15. Jointly held RENTAL PROPERTY. Note that the mortgage is reported in Part II. You must indicate at least the city and state. You may add whether it is a house, condo or townhome and the specific address when you have several in the same locality. You don't report your personal residence if you don't rent it out.

16. Jointly held undeveloped property. If it is for investment, you should include the fact that it is unimproved, and the city and state. If you have no income, put "None" in the income column. If the land is being used for a profit, report the type of activity and income.

17. Your investment in a NON-PUBLICLY TRADED LIMITED PARTNERSHIP. Because it's not publicly traded, you have to provide the location and description of its activity. If it were a publicly traded limited partnership, just list the full name.

18. Your HONORARIUM for speaking at a conference. Note that you have to include the date.

19. Your interest as a beneficiary in a probated WILL of a deceased person. You must report that interest if your share of the estate is over $1000, or if you are receiving income over $200. Your interest as an executor in a will of a deceased person. If you are receiving a fee for your work as executor, and it is over $200, also list the fee as income. You must report the estate's holdings, although you do not need to report personal property. Do not list your interest in the will of a living person. Note that your position as an executor is also listed in Part III. See Note 6 for how to report holdings.

20. Dependent child's interest as beneficiary and spouse's interest as trustee in an educational TRUST established by you and your spouse for your son. See the Definitions Section of these Notes for further explanation. You would need to report it either because your spouse is the trustee or because your son is the beneficiary. You must report the trust's holdings. Because you are not the trustee, do not report it in Part III. See Note 6 for how to report holdings.

Part II. Liabilities

1. Joint mortgage on rental property listed in Part I, as it is over $10,000 during the reporting period. Include the name of the bank, and the city and state. You should reference which property, especially if you have more than one. Note that you do not need to report any mortgage on your personal residence.

2. Dependent child's student loan.

3. Your margin account must be listed if it meets the reporting criteria.

Part III. Outside Positions

1. Your position as President of your consulting company. If you make more than $200 in income, you also need to report it in Part 1. If not, only report it here.

2. Your position as an executor of the estate.

3. Your position as an officer of a professional association. You would not report it if you were only a member.

4. Your position as an officer of a homeowner's association. As you no longer hold the position, put an "X" in the box.

Part IV. Agreements and Arrangements

1. Your GE pension plan. Include a description of the terms, such as when payments begin. The plan must also be reported in Part I.

2. Your IBM pension plan. Include the dates and parties. The plan must be reported in Part I.

3. Your agreement with Boeing regarding future employment.

Part V. Gifts and Travel Reimbursements

1. Your free ticket, which you received because you are an officer, to attend the conference. Include location and date of trip.

INDEX TO LINES IN PART I

Salaries	-	Lines 1 - 2

S Corp	-	Line 1

Pensions	-	Lines 3 - 4

401(k)	-	Line 4

IRAs	-	Lines 5 - 6

Annuities	-	Lines 7 - 8

Mutual Funds	-	Lines 5, 9

Stocks	-	Lines 6, 10 - 11

Brokerage	-	Line 6

Cash/Asset	-	Line 10

Stock	-	Line 11

Bonds	-	Line 12

Insurance	-	Lines 13 - 14

Property	-	Lines 15 - 16

Limited Partnership -	Line 17

Honorarium	-	Line 18

Estates	-	Line 19

Trusts	-	Line 20

DEFINITIONS

Annuities

Fixed - The Company guarantees a specific rate of return.

Variable - The investor has limited options of investment and the return is based on performance of investment.

Excepted Investment Funds (EIFs) - Investment funds such as mutual funds, common trust funds of banks, defined contribution pension plans, investment trusts and limited partnerships IF they meet the criteria. If an investment fund is not an EIF, you must report its holdings. Stock in individual companies and brokerage accounts are not EIFs. The criteria for an EIF are:

a) widely held (usually more than 100 participants, such as pension plans of medium to large companies) and

b) independently managed (you have no control over the investments in the fund) and either

c1) publicly traded or available (as most mutual funds) or

c2) widely diversified (no more than 5% of its value in securities of one entity (except U.S. Government) and no more than 20% of its value is in a particular economic or geographic sector).

Excepted Trusts (ETs) - Trusts that you did not create and in which you have no specific knowledge of the holdings or sources of income. You do not receive any reports. Do not report its holdings.

IRAs - Accounts are individual, so they are not widely held and thus do not qualify as EIFs. They may be invested in EIFs.

Life Insurance

Term - Does not require disclosure.

Cash value - The types are whole life (also ordinary or straight), in which you have no control over investments; universal, in which you receive a minimally guaranteed rate of return; and variable, in which you choose investments from several options.

Pensions

Fixed, guaranteed pension payment - The employer makes contributions and guarantees that each employee receives a certain fixed benefit. You cannot control the assets of this pension. Do not report its holdings.

Ability to control - You may make contributions to a separate account maintained by the employer and receive whatever the investment earns. If you can control or select the types of investment in this account, you must report the account's holdings. If the investment is pooled for a large number of employees and is widely diversified (see EIFs, above), you only have to identify the name of the pool and its manager. Examples of these are 401(k) or 403(b) pensions.