Form 5500 for Health FSA

[Guest moseelig]

I have a client who for the first time has over 100 participants (101 to be exact) in their Health FSA. Do I have to file a Form 5500?

[papogi]

Yes. You should only have to file the main 5500 (i.e., no Schedule F).

[sloble@crowleyfleck.com]

Even if its unfunded?? I thought DOL Technical Release Memo (92-01; 57 Fed. Reg. 23272) was still goo dlaw. This essentially provides that the DOL will not enforce the trust/financial reporting requirements on a health FSA if: (1) participant contributions come through a cafeteria plan; (2) benefits are paid from the general assets of the employer (e.g., not from a trust or account in plan's name); and (3) there is no other basis upon which plan assets might exist (e.g., there is no separate account or fund suggesting that the plan "owns" the assets).

[Ron Snyder]

That means certain sections of the 5500 needn't be completed, not that the form doesn't need to be filed. See the instructions for form 5500.