Form 5500 filing for medical reimbursement portion of 125 plan

[Lori Foresz]

Hi,

I was under the belief (apparently wrong) that the filing requirements for 125 plans were suspended in 2001. We just received a letter from a 125 administrator telling us that we need to file a form 5500 for the fring plan and that because assets are held in trust, a Schedule H needs to be completed (and I suppose an audit?) as well.

I am trying to find clear guidance, but coming up short. Can anyone help?

Many thanks.

P.S. We do file a Form 5500 for their fully-insured welfare plan because it has greater than 100 parts. How would (or could) we combine that filing with the medical reimbursement filing if required?

[Lori Foresz]

To clarify, the filing would be required for the medical reimbursement portion of the plan that is a welfare feature. I do understand now (after reading) that this part of the plan may still be required to file Form 5500s (just not a Schedule F anymore for years after 2001). So, it is treated like any other welfare plan.

If no separate trust exists (i.e. general assets of the employer) AND less than 100 participants "use" the medical reimbursement feature, then I'm thinking the plan would be exempt from filing like any other unfunded welfare benefit plan with less than 100 parts.

I'm questioning why the administrator would say the plan has a trust and I need to look into that. Do 125 plans usually establish trusts? Any experience?

Thanks for any help!