Tuition Reimbursement Plan

[Guest nlmc18]

We started a tuition reimbursement plan in 2004 funded from our general assets. Are we required to file Form 5500? If so, are any Schedules required?

[Lori Friedman]

An I.R.C. Sec. 127 educational asistance program is a "fringe benefit plan" within the meaning of I.R.C. Sec. 6039D(d)(1). A few years ago, the IRS suspended the Form 5500 filing requirement for fringe benefit plans. See IRS Notice 2002-24 for more information.

[Guest nlmc18]

Lori-

Thanks for your response. I've been told that our plan is a Section 132 working condition plan. Does this make a difference?

[Lori Friedman]

nlmc18,

The bottom line is still the same -- no Form 5500.

Your employer must limit the benefit to job-related training and education? This would be a "working condition fringe" -- the employer deducts its costs as ordinary and necessary business expenses under I.R.C. Sec. 162, and the benefits are excluded from the employee's gross taxable compensation under I.R.C. Sec. 132(d). Working condition fringe benefits aren't classified under the "fringe benefit plan" umbrella and aren't subject to Form 5500 filing requirements.