Guest Kimberly Flett Posted July 23, 2002 Share Posted July 23, 2002 The AICPA audit guide classifies these plans under Welfare Benefit plans. Generally they are 501© plans. Question: Is a 5500 required to be filed if the plans are Unfunded (paid from the general assets of the plan sponsor) and have less than 100 participants. Cannot locate specific guidance on these plans. Your assistance is appreciated Link to comment Share on other sites More sharing options...
Guest b2kates Posted July 24, 2002 Share Posted July 24, 2002 If it is unfunded, how is it a VEBA. No separate trust, no assets in the plan- no 5500. Link to comment Share on other sites More sharing options...
GBurns Posted July 25, 2002 Share Posted July 25, 2002 What does being a "501© plan" have to do with being a Supplemental Unemployment Plan? What does "501©" have to do with the benefit ? George D. Burns Cost Reduction Strategies Burns and Associates, Inc www.costreductionstrategies.com(under construction) www.employeebenefitsstrategies.com(under construction) Link to comment Share on other sites More sharing options...
Guest b2kates Posted July 25, 2002 Share Posted July 25, 2002 501© is the code section that defines the tax status of the trust. Generally tax exempt VEBAs are under 501©(9) Link to comment Share on other sites More sharing options...
Guest Kimberly Flett Posted July 25, 2002 Share Posted July 25, 2002 you are all missing the point of my question. I never said this was a VEBA which not all welfare plans are. my question is whether a Form 5500 is required for a Supplemental Unemployment Plan that the AICPA lists as a welfare benefit plan but generally is actually a 501© organization. In this case there are less than 100 participants and benefits are paid from the general assets of the sponsor. Link to comment Share on other sites More sharing options...
E as in ERISA Posted July 25, 2002 Share Posted July 25, 2002 Kimberly -- I think that your reference to a "501© plan" was confusing. In yhe benefit plan arena, the reference to IRC Sec. 501© generally means IRC Sec. 501©(9) -- a voluntary employees' beneficiary assocation or VEBA. A 501©(9) entity or VEBA is not a plan, but rather the funding mechanism for a plan. I.e., the document don't contain benefit provisions; it establishes a legal entity (such as a trust) to hold the money to pay benefits. There would be a separate document establishing a plan that contains the benefit provisions. If the benefits are described in Section 3(1) or (2) of ERISA, then it is generally a benefit plan. However, in some cases the payment of benefits is actually a "payroll" practice" as opposed to a formal plan (see Labor Regs. Sec. 2510.3-1 and -2). A supplemental unemployment arrangement is sometimes just a payroll practice and sometimes a benefit plan under ERISA. I think people were just trying to clarify whether you have a 501©(9) trust or whether it is truly unfunded. If yours is a small welfare plan and is in fact unfunded, then Labor Regs. Sec. 2520.104-44 contains an exemption from the 5500 reporting requirements. Link to comment Share on other sites More sharing options...
Guest Kimberly Flett Posted July 25, 2002 Share Posted July 25, 2002 Thanks for your help Link to comment Share on other sites More sharing options...
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