Guest LynneP Posted May 23, 2002 Posted May 23, 2002 We're filing Form 5500 for Health Care FSA with 100+ participants for the 1st time since we've learned it's considered a welfare plan (no longer filing as fringe plan per new IRS rules). We need to do a Summary Annual Report as well - has anyone done a SAR for a Health Care FSA? Should it include elections and/or paid claims? Or can we just advise participants that a copy of the report is available. I'm using standard DOL format and not sure what's relevant. Thanks.
Guest DK Ellerson Posted June 5, 2002 Posted June 5, 2002 Are you referring to the rules in IRS Notice 2002-24? According to those rules you do not have to file the Form 5500 for the Health Care FSA (Schedule F). Even though there were 100+ participants, the Health Care portion of the plan would still be governed by the rules set forth in Section 125. However, if there were 100+ participants in the group health plan (this is the welfare benefit portion of the plan) a 5500 must be filed. I'm afraid I'm not much help regarding SAR, this will be my first year preparing them, I'm learning as I go. I hope this information was helpful.
SLuskin Posted June 5, 2002 Posted June 5, 2002 I disagree with DK Ellerson's response here. I believe that you do have to file a 5500 for a health FSA with more than 100 participants. You do not have to file a Schedule F for that plan, however. You answer the same questions as for any group medical plan, but in this case, there would not be a Schedule A, either. There might be a Schedule C if you paid someone more than 5000 to administer that plan. I have no idea what the requirement is for the SAR.
Guest LPettey Posted June 6, 2002 Posted June 6, 2002 Thanks, I agree w/SLuskin. Believe SAR required, so I'm going to prepare the SAR with generic information - ie, a return was filed and a copy is available.
Guest DK Ellerson Posted June 10, 2002 Posted June 10, 2002 SLuskin - Thanks so smuch for bringing this to my attention. Based on your reply, I did some further research and confirmed the information you provided. I've received so many different notices, publications, announcements, etc. from various companies and organizations regarding this matter that I got some of my facts mixed up. One article says this, another one says that...blah..blah..blah. God forbid the IRS should publish anything that's clear cut. So then, if less than $5000 was paid to administer the plan, would you simply file the 5500 only, with no attached schedules?
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