Form 5500 Required

[Guest cease]

Can anyone help me with the following?

My client has a fringe benefit plan (i.e. Section 125 plan) that covers more than 100 participants. The TPA completed a Form 5500 and told the client that since they received service fees in excess of $5,000, that the Form 5500 was required to be filed.

This plan has no welfare feature - it is a medical reimbursement account only. Am I misunderstanding the filing requirements or is a 5500 required to be filed?

Thanks

[Guest ElKH]

The determining factor is the nature of the underlying benefits in the cafeteria plan with more than 100 participants. The question you ask - do any underlying benefits qualify as a "welfare" benefit?

If not, you don't have to file, regardless of the number of participants or the size of the fees.

I think they're mixing their large retirement plans up with their large welfare benefit plans.