Guest Marcy Posted June 1, 2007 Share Posted June 1, 2007 Hello all, Does anyone out there have any information about closing out an Internal Benefits Account. This account was established pre-HSA/FSA. There have been no new contributions to this plan in the past 4 years or so. It is an interest bearing account. Those that participate basically sumbit receipts for expenses, as they would an FSA account, and they get reimbursed from this internal account. Any and all thoughts would be appreciated. Thanks. Link to comment Share on other sites More sharing options...
leevena Posted June 1, 2007 Share Posted June 1, 2007 Sorry for the ignorance, but what is an "internal benefit account?" You say it is pre-HSA/FSA, but could you be more specific as to how it was set-up and what it was for? Link to comment Share on other sites More sharing options...
Guest Marcy Posted June 4, 2007 Share Posted June 4, 2007 Sorry for the ignorance, but what is an "internal benefit account?" You say it is pre-HSA/FSA, but could you be more specific as to how it was set-up and what it was for? The account was established as an internal reimbursement account for unreimbursed medical expenses, very similar to FSA, as part of a collective bargaining agreement. It was initially employer funded. During the next bargaining agreement period this benefit was ended and no new funds were to be added. We now have this account which we are trying to close for good. Do you know if there are any IRS rules that would prevent us from closing out the remaining account balances and send a check to the person with the taxes deducted. thanks. Link to comment Share on other sites More sharing options...
masteff Posted June 4, 2007 Share Posted June 4, 2007 Still trying to figure out where these fit... when employees receive a reimbursment, is it taxable income to them? Kurt Vonnegut: 'To be is to do'-Socrates 'To do is to be'-Jean-Paul Sartre 'Do be do be do'-Frank Sinatra Link to comment Share on other sites More sharing options...
leevena Posted June 5, 2007 Share Posted June 5, 2007 Marcy...I am sorry, but I still do not know what type of plan you are referring to in your post. The establishment of a plan usually follows one of the IRS rules, but you do not make mention of which one. My best suggestion is to find the paperwork and read it, this should give us some help. Link to comment Share on other sites More sharing options...
Jacmo Posted June 13, 2007 Share Posted June 13, 2007 Sounds like a MERP. Link to comment Share on other sites More sharing options...
leevena Posted June 13, 2007 Share Posted June 13, 2007 Sounds like a MERP. I agree, but without any reply from Marcy, we will never know. Link to comment Share on other sites More sharing options...
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