Jump to content

Wrap and "mega wrap" documents


Recommended Posts

I've seen wrap documents for Section 125 plans, that allow you to file just one 5500 form for all of the benefits that fall under the 125 plan. I've also just seen reference to a "Mega Wrap" document, which incorporates the cafeteria plan and underlying benefits, in addition to certain health/welfare benefits that are NOT under the cafeteria plan.

Is this a viable technique for doing only one 5500 form? Ignoring document issues, for now anyway  - just interested in the 5500 question. Thanks. 

Link to comment
Share on other sites

Belgarath, I don't know if I can find guidance (hope there's none to the contrary!), but that is the way I have usually done it, i.e. included the 125 "plan" (which is really a tax gimmick, not a plan), the 129 benefit, etc., in one plan document. I have always thought that the DOL would just consider that the non-ERISA benefits as notionally not part of the ERISA plan required to be reported on 5500. You could insert verbiage to that effect in the document if you think would help. Never had any pushback on this approach from DOL or auditors, but maybe others have had different experience and we'll hear from them.

Luke Bailey

Senior Counsel

Clark Hill PLC

214-651-4572 (O) | LBailey@clarkhill.com

2600 Dallas Parkway Suite 600

Frisco, TX 75034

Link to comment
Share on other sites

Create an account or sign in to comment

You need to be a member in order to leave a comment

Create an account

Sign up for a new account in our community. It's easy!

Register a new account

Sign in

Already have an account? Sign in here.

Sign In Now

  • Create New...