FSA Participant count for 5500

[AmyR]

For purposes of determining if a 5500 is required for a cafeteria plan that includes a health FSA, has anyone seen information on how are participants are counted to determine its status as a small or large plan?

Is it anyone eligible to be in the cafeteria plan/health FSA? Or, is it more like the former Schedule F instructions which I believe referenced a participant as one who had deferred at least $1? The employer I am working with has over 100 employees eligible to participate in the health FSA, but only about 45 have been deferring. Thank you for any advice you might have!

[Guest JerseyGirl]

The employer in question will not have to file a 5500. As it happens, on today's Benefits Buzz there is a Question of The Week from EBIA that will tell you all about it!

Scroll through, and look for this headline:

What Are the Current Form 5500 Filing Requirements for Cafeteria Plans and Their Component Benefits?

[AmyR]

Thanks so much for your reply. I had seen that EBIA weekly Q&A and thought it was timely (for me at least), but didn't think it clarified who to count as a participant to determine if you are a small or large plan - did I miss something in the article?

Welfare plans seem to often include as a participant anyone eligible, even if they don't elect to receive the benefit. Therefore, I was a little concerned the company's participant count could exceed 100 and cause a return to be required.

The EBIA cafeteria plan manual says participants "includes covered employees plus COBRA qualified beneficiaries, but not children covered by a QMCSO." However, it does not clarify who is a covered employee. I guess the conservative direction would be to file and list all who are eligible to defer, but was hoping I was missing some guidance on this that would allow us to do away with that 5500.