Guest RAJ Posted January 9, 2002 Posted January 9, 2002 I have read through the regulations regarding Section 132 plans and cannot find the answer to this question. If a company wants to establish one of these plans, do the funds have to be held in a separate account? (Similar to a Flexible Spending Account)If so, does the account have to be a "trust"? Can the company earn interest on those funds? Any materials I could reference would be helpful. Thanks!
IRC401 Posted January 10, 2002 Posted January 10, 2002 My recollection is that all you need is an election form and a shoe box to collect receipts (although I don't actually recommend using a shoebox). You don't need a trust.
Guest RAJ Posted January 10, 2002 Posted January 10, 2002 IRC 401. Thanks for the feedback and the early morning chuckle! I need a new pair of shoes. Perfect timing.
Guest mdrucker Posted January 15, 2002 Posted January 15, 2002 The money should be held in a separate account so you can do account reconciliation; it does not have to be a trust. My company provides outsourced administration for section 132 programs. Contact me for more information or to discuss your specific questions. Mike
Lisa Hand Posted January 16, 2002 Posted January 16, 2002 Mike: Please remember that the message boards are for general responses. Many of those who post responses are TPAs. The appropriate place for advertising is the yellow pages. Lisa
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