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Wrap Document-125 Plan YE different from other benefits?


Guest Carolyn Barnard
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Guest Carolyn Barnard

I understand that a "wrap" plan can be advantageous to an employer who's been filing several 5500s every year. However, I have a plan sponsor who wants to create one plan for their self-funded health and dental, life, LTD and flex benefits. The only problem is that the health, dental, life and LTD are 10/31 plan year ends, and the 125 plan has a 12/31 plan year end. They have not been filing on the Health Reimbursement Account as it did not meet the participant threshold. It will however, for the 1/1/04 - 12/31/04 plan year. Is it allowable to keep the 125 plan on a 12/31 basis and yet report on it as a 10/31 if it is included in the wrap plan? Which document overrides, or does the 125 plan just have to have the same plan year end under the wrap plan provisions?

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I see that you posted this twice and received no responses either way. I don't believe that you can have 2 plan years within one plan. Of course you CAN have a plan year and a separate contract year, but that would not apply to your flexible benefits plan, which is not a "contrract" but a plan. You need 2 plans, and keep the flex plan unwrapped, or one plan (12/31) and contract years for the other benefits.

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Guest Carolyn Barnard

Thanks Vebaguru,

When I didn't get any responses, I pretty much came to the same conclusions as you.

By the way, are you really the "Veba Guru?" I've had questions about VEBAs in the past, and have never been able to track down anyone who is an authority on the subject. It would be great to be able to pick your brain from time to time!

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Guest Forms R Us

I vote for "VEBA Gone".

This individual contributes something useful about 10% of the time. Otherwise, this person is simply nasty and mean-spirited.

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This individual contributes something useful about 10% of the time.

Forms R Us:

Currently you have made four posts to this forum. It appears to me that none of them have contained any benefits information. Two have accused others of being rude, mean-spirited, etc. The other two, at least in my opinion, also seem to be accusatory in nature.

Just an observation.

...but then again, What Do I Know?

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