Cafeteria Plan Filing

[Guest JFBEARB]

To determine whether a cafeteria plan is exempt from filing, one of the "tests" is to find out if the plan is funded. That is if the plan assets have been deposited in the name of the "Plan" rather than remain as part of the general assets of the company.

I have a situation where the client is self funded and deposits into an account in the name of the medical plan NOT the cafeteria plan. (Example: ABC Employee Benefit Plan--name of medical plan. The cafeteria plan name is ABC Cafeteria Plan)

Does this constitute funding in the name of the "Plan"?

[SLuskin]

It is my understanding that the funds have to be "general assets of the employer" funds. That would make putting them in the name of the medical plan taking them out of the general assets before any reimbursements are made to the employees. My read is that this would be funding.