Filing for medical reimbursement part of 125 plan

[Lori Foresz]

Hi,

I am struggling to comprehend what type of filing is required for a medical reimbursement portion of a 125 plan. I was under the belief that 125 plans no longer had to file Forms 5500, but now I understand that a medical reimbursement portion of the plan (as a welfare benefit feature) still needs to file

The 125 plan admnistrator is saying that since contributions are held in trust, we need to complete Schedule H, which then requires an audit.

Can someone help clarify why we need the filing and the audit?

P.S. The company also has a fully-insured welfare plan that a Form 5500 is filed for because of the >100 participant rule. Is is possible to combine this as part of that filing, but what about the Schedule H??

Help is greatly appreciated.

Thanks!