Belgarath Posted July 2, 2013 Posted July 2, 2013 A block of Cafeteria Plans has apparently been filing for some number of years when forms were not required. Now that they have discovered this, they want to stop. Seems reasonable! Has anyone had any experience with this? I've never had much to do with Cafeteria Plans. Is it likely that they will receive a reminder/penalty letter when they suddenly stop filing, or is this a commonplace occurrence? Any observations welcome!
ETA Consulting LLC Posted July 2, 2013 Posted July 2, 2013 Using the logic derived from when a qualified plan is no longer subject to ERISA, I'd say "you don't have to file merely because you've previously filed". This happens often when a plan is left with the owner as the only employee. So, you just stop filing. It may look strange, but if questioned you'd show why you are not required to file. Good Luck! CPC, QPA, QKA, TGPC, ERPA
Flyboyjohn Posted July 2, 2013 Posted July 2, 2013 Another approach is to file an unnecessary "final" 5500 with Code 4R (to avoid having to respond to non-filing notices)
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