5500 For Voluntary Life Ins Under 125 Plan

[amcorson]

A 5500 is required for a welfare plan with over 100 participants. How is a voluntary life (or vision) insurance option under a cafeteria plan classified?

If 100 or more employees elected the insurance through the cafetria plan (all ee pre-tax $, no employer $) would this be considered a welfare benefit that would need a 5500 filing? Or would this fall under an exemption from filing with the 125 plan?

I have been told by an isurance company that "voluntary" benefits under a 125 are exempt.

Thank you.

[J Simmons]

A 5500 is required for a welfare plan with over 100 participants. How is a voluntary life (or vision) insurance option under a cafeteria plan classified?

Voluntary life (or vision) insurance in a cafeteria plan may be an ERISA welfare benefit plan for which a F5500 is required. See more below.

If 100 or more employees elected the insurance through the cafetria plan (all ee pre-tax $, no employer $) would this be considered a welfare benefit that would need a 5500 filing? Or would this fall under an exemption from filing with the 125 plan?

I have been told by an isurance company that "voluntary" benefits under a 125 are exempt.

Thank you.

More is required to dispel a cafeteria plan's status as an ERISA welfare benefit plan than that no ER contributions are involved. Is it a group policy involved? Are the premium rates better than what the EEs could get on their own with no ER involvement? Does the ER endorse the insurance? Does the ER receive any $ from the insurer other than just reimbursing the added cost to administer payroll reductions? Is the ER involved in making any eligibility decisions? The consequences of getting it wrong for not filing a F5500 that should have been weigh much more heavily than the cost/burden of preparing and filing a F5500.