Guest moorhan Posted July 17, 2001 Posted July 17, 2001 A client has a Section 125 Plan which was drafted some time ago. Over the course of a few years the client began to offer several additional pre-tax benefits. These new pre-tax benefits are not referenced in the old Section 125 Plan document. As it is the intent of the client to offer these benefits pre-tax, we included the financial information for this coverage on Schedule F of the Form 5500 for the Section 125 Plan. Is this correct? Some of these pre-tax benefits are offered through a national insurance company. This insurance company files a 5500 for these benefits only. We were engaged to filed the 5500 for the Section 125 Plan. Must we have a wrapper document to file all of these pre-tax plans together? Should we continue to file a 5500 for the Section 125 Plan as well as separate 5500's for each Plan under the Section 125 Plan?
GBurns Posted July 19, 2001 Posted July 19, 2001 You seem to be implying that there is some way to offer pre-tax benefits other than through a cafeteria plan. Is that what you are implying? You also seem to be implying that there can only be 1 section 125 cafeteria plan. Why is the insurance company filing a 5500 instead of the client? Can you clarify your scenario a little better? George D. Burns Cost Reduction Strategies Burns and Associates, Inc www.costreductionstrategies.com(under construction) www.employeebenefitsstrategies.com(under construction)
Guest moorhan Posted July 19, 2001 Posted July 19, 2001 Yes, here are the issues: 1. The client has one Section 125 Plan that references only one type of benefit (health care) 2. The client has added other pre-tax welfare benefits, but the Section 125 Plan Document has not been amended to reflect these coverages. 3. I believed you must file a 5500 for the Section 125 Plan as well as each "plan" that falls beneath it, unless you have a wrapper document, in which case you could file the Section 125 Plan and all Plan's beneath it together. 4. The new pre-tax benefits are offered through a national insurance company that offers to complete the Form 5500 for those benefits. The client filed this return, a return for the Section 125 Plan, and a return for their health care plan (which falls under the Section 125 Plan). Does this sound correct? Thank you for your response.
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