To file or not to file? Is 5500 required for cafeteria plan with fewer than 100 participants; however, assets held in a trust.

[Guest spanarkle]

Is 5500 required for cafeteria plan offering medical reimbursement, dependent care reimbursement, and group health with fewer than 100 participants? The employer remits the participants contributions to us, we hold in a segregated account with the account title being "Employer A Cafeteria Trust" and then make the reimbursements to the participants from this account. The group health premiums are deposited into the account and then sent back to the employer. Each employer has their own account and our plans are reconciled back to the balances in these accounts.

Also, if it is necessary to file the 5500, is an independent auditors report required?

[papogi]

If monies are placed in a separate account with the plan name, then the plan would probably be considered funded, and would require a 5500 and accountant's opinion. What prints on the checks when they are cut to the employees/providers? If it appears the monies are coming from the employer's general assets, you might be OK.