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Is a 5500 required to be filed.


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I have 2 plans.

The first is a medical insurance plan which is fully funded by the employer . We have 17 people on the plan.

The second plan is a medical reimbursement plan which is self insured.

Question do these plans need to have 5500 filed?

Question the medical reimbursement plan has 2 shareholders which are greater than 2% employees. From what I have researched they can be in the plan, however it is deducted as wages not subject to fica and medicare taxes.

Question Is this correct?

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Guest parrot87

The second plan (medical reimbursement plan) does not need a 5500 unless the funds are held in a trust.

The first plan, do you mean that the employer contributes 100% towards a fully insured health insurance policy, or that you really do self fund. I.E. that the company pays the providers directly. If so, any provider that is reimbursed more than $600 per year by your company needs to be accounted for via form xyz (not sure which it is). Ask your accountant or consultant.

If you pay providers directly, then you have to determine if its a funded plan or not. If funds are held in trust, then you need a 5500. If not, then you are exempt until you have 100 participants.

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The second plan (medical reimbursement plan) does not need a 5500 unless the funds are held in a trust.

The first plan, do you mean that the employer contributes 100% towards a fully insured health insurance policy, or that you really do self fund.

I.E. that the company pays the providers directly. If so, any provider that is reimbursed more than $600 per year by your company needs to be accounted for via form xyz (not sure which it is). Ask your accountant or consultant.

If you pay providers directly, then you have to determine if its a funded plan or not. If funds are held in trust, then you need a 5500. If not, then you are exempt until you have 100 participants.

The medical insurance plan is paid directly to the insurance company. The employer pays the entire premium on behalf of the employees.

Can you please explain what self fund is and the 600 rule?

Thank-you

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Guest parrot87

The answer to your question is a "no" to both.

As for self funding, I would do a search to start off, its an extensive subject and a google search will be better than me as an introduction. As for the "600 rule", pardon, its actually form 5500 schedule C. Its actually $1000 or $5000 depending on what kind of compensation. I think $600 is the threshold set for VEBA funds, not sure, just sitting in the back of my mind. I'd have to look it all up for an exact answer. But these aren't things you have to worry about. Your health insurance arrangement is nowhere close to having to file a 5500, so don't worry about whats happening on Pluto.

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