5500 Question

[Archimage]

I do not know too much about VEBAs. I have a client that set up a VEBA to fund certain health benefits for employees. I know the VEBA has to file a form 990 each year. Does the VEBA simply file a form 990 and then the welfare benefit (i. e. health) file its own 5500 covering the health benefits?

[Guest b2kates]

short answer, yes, the health plan also has to file a 5500 if there are more than 100 participants.

Since the VEBA is funded remember that the 5500 will be the "long form" and and audit.

[Archimage]

Even if there are less than 100 participants?

[Guest b2kates]

no 5500 when there are less than 100 participants.

[KJohnson]

To get out of the 5500 uner the less than 100 rule you generally have to be insured or benefits must be paid from the general assets of the employer. A VEBA does not meet either of these conditions.

[Archimage]

That is what I am being told by another source. Because a VEBA is a funded welfare benefit plan then a 5500 must be filed.

[E as in ERISA]

KJohnson and that other person are correct. And if multiple welfare benefit plans are in the one VEBA, there may now be multiple Form 5500s -- one for each separate plan....