Cafeteria plan funded w/ ins and a veba

[Guest esi-jht]

We have one client whose welfare benefit plan is funded by insurance and a veba. We are confused as to how to report this on F5500. If I'm understanding this correctly, there is only one F5500 filed and we would select the "Funding and Benefit Arrangements" at Line 9 as Insurance and Trust? Is this correct? If so, what detail is needed for the trust? We have Schedule A for the insurance but what would be needed for the VEBA (trust) portion? This would be schedule H or I, correct?

[Lori Friedman]

First, is the VEBA a trust? A VEBA's usually formed as a trust, but you'll sometimes run accross some that are corporations or unincorporated associations. If the VEBA is a trust, the plan has both "insurance" and "trust" as its funding and benefit arrangements.

Second, there's no Schedule A for the VEBA. It's not an insurance product.

Third, it's the plan, and not the VEBA, that files Form 5500. The VEBA is a tax-exempt organization that files Form 990. The plan's Form 5500, Schedule H (or Schedule I) reports all of the plan's financial information, whether the assets are held in a trust, or in custodial accounts, etc.

Fourth, you've posted your question in the Cafeteria Plans forum. A cafeteria plan doesn't file Form 5500. The underlying welfare benefit plans, however, may be required to file.