§129 Plan Requirements

[Guest Mel Fuentes]

Somebody in our office asked me whether §129 plans were excluded from filing a Form

5500 and whether they were subject to ERISA. I'm not familiar with the operation of these types of plans and hope that someone could help me find the answers to these questions.

This is what I know so far. The instructions for Form 5500 aren't of any help. The 5500 Preparer's Manual doesn't indicate there is a need to file. But IRC §6039(d) lists §129 as a "specified fringe benefit plan" subject to reporting. I'm a little confused (more so than normal).

[This message has been edited by Mel Fuentes (edited 09-11-98).]

[Guest John P Kosciusko]

Dependent care assistance programs are subject to reporting and recordkeeping requirements imposed by the Internal Revenue Service under tax code Section 6039D. Generally, this requires that an annual return be filed for the plan on IRS Form 5500, containing such information as the number of employees of the employer, the number eligible to participate in the plan, and the number actually participating. The employer also is required to keep the records that are necessary for determining whether these requirements have been met.