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non-electing church plan


k man

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we deal with a church plan with an employer contribution that has not filed 5500's nor has it made an election under ERISA. However, the plan is operated like an ERISA plan insofar as it has a vesting schedule and participation restrictions such as a one year wait.

the question is: does operating a non-electing church plan in accordance with ERISA somehow subject it to the requirement to file a 5500?

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Guest Danny Miller

The good news is, no, having a plan that contains ERISA language and even complying with ERISA (even to the point of filing 5500s) doesn't mean you've elected to be subject to ERISA. There are a couple of IRS private letter rulings that even say this. Of course, if you've promised eemployees something in your plan, you may have a contractual issue in terms of being able to change that promise, at least on a retroactive basis. Hope this helps.

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