File a 5500?

[wsp]

Retirement plan client called and asked about filing a 5500 for their cafeteria plan. I wasn't sure so figured I'd solicit help from the experts.

Plan has three components: Medical Premium payment, Dependent Care Reimbursement FSA, and Unreimbursed Medical Care FSA. Up until this last year all were funded with employee dollars.

The last 5500 was filed in 2001. It was filed along with only a Schedule F. Plan has (and always has had) under 100 participants.

The medical premium is paid every pay period. But, obviously, the FSA's have assets that need to be tracked.

I don't believe a filing is required, but should they have been filing? If so, what Forms should have been included?

This year the plan also has a matching feature where the company will match 25% of all employee dollars contributed to the medical FSA up to a max match of $455. Does that change the answer? No HCE's participate so discrimination testing issues.

Any help provided will be much appreciated.

[jpod]

5500 filing is required for the plan, or at least the medical reimbursement component, unless the number of participants is below the 100 threshold.

[wsp]

5500 filing is required for the plan, or at least the medical reimbursement component, unless the number of participants is below the 100 threshold.

Not questioning the response as I agree with your conclusion but why would the meidcal reimbursement component be treated separately from the dependent care component? Or was that not what you were alluding to?

[jpod]

It's not clear from the original posting whether we have one ERISA "plan" with 3 separate features, or one ERISA plan, namely, the medical reimbursement program. If you have one ERISA plan, then I think you'd count the total number of participants in the overall plan, rather than the number of participants in the medical reimbursement program. I can't answer these questions without seeing the documentation (and even then they are likely to be head-scratchers).

[jpod]

My previous post needs to be clarified.

But for the medical reimbursement feature, there would be no ERISA plan here. Therefore, I am suggesting that it is not clear whether we have one ERISA plan that has three components, or one ERISA plan and 2 non-ERISA plans. The methodology for counting the number of participants would differ depending upon how you resolve this issue.

[wsp]

My previous post needs to be clarified.

But for the medical reimbursement feature, there would be no ERISA plan here. Therefore, I am suggesting that it is not clear whether we have one ERISA plan that has three components, or one ERISA plan and 2 non-ERISA plans. The methodology for counting the number of participants would differ depending upon how you resolve this issue.

Got it. Irrelevent in this case as there's never been a year where more than 70 people have been employed at the company during a year and rare has there been more than 55 at any one time. No counting necessary and no filing required. Not going to have the client provide the document if it's not necessary.

Thanks, jpod!