Guest Brenda Stepp Posted September 17, 2002 Posted September 17, 2002 Our corporate Flexible Compensation Plan encompasses both medical and dependent child care. It has its own plan number and we have been filing a separate 5500 for the plan each year. I was told by the DOL that under notice 2002-24, I no longer have to file a 5500 for this plan at all. I spoke with one of our auditors, and he agrees with this stance; however, he had a converstion with another accountant that believed if your FSA covered dependent child care, you still had to file. All contributions to the plan are made by the employees themselves, there is no employer contribution. Any input?
papogi Posted September 17, 2002 Posted September 17, 2002 I am assuming your plan covers more than 100 participants. If not, let me know. There is no 5500 requirement for the cafeteria plan (2002-24). While there is no filing requirement for the 125 plan, there may be (along with any appropriate schedules) for any underlying plans if they are subject to ERISA. The dependent care accounts are not subject to ERISA, so there's nothing to do there. Unless you are a government or church plan, you will have to file a 5500 under ERISA (not the IRS) for the health care accounts.
Guest Brenda Stepp Posted September 17, 2002 Posted September 17, 2002 OK, I typed this once and our server didn't send it. Let's try again. Your assumption is correct, we have over 100 employees covered by the plan. The overall plan is a section 125 cafeteria plan with an underlying section 105 and 106 medical plan as well as a 129 dependent care plan. The info I get from my TPA just lumps all of this together. If I need to file for ERISA, but not the IRS, should I just keep completing the 5500 and sending it in to the DOL? I am neither an accountant nor a lawyer, I am a treasury professional with the honor of preparing these things each year, so please pardon my naivete when it comes to some of these questions. I orignially read 2002-24 to mean I still had to file the 5500, just not a schedule F. Now I'm just confused.
papogi Posted September 17, 2002 Posted September 17, 2002 2002-24 was very confusing. It only states that F is not required. Further guidance from the IRS has clarified that the 5500 is not required for a 125 plan to the IRS. 2002-24 had no bearing on your potential responsibility to file under ERISA. Since you have more than 100 participants (and are not a gov't or church plan), you still must file. You will file for the medical plan and the FSA. I am very surprised that the DOL said you didn't need to file, because I doubt they would be speaking for the IRS, in which case their statement is correct. You still must file with the DOL.
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