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Cafeteria Plans, SPD, etc.


Guest JackW

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Posted

Two questions. Must a sec. 125 plan file a separate 5500 form from that of the underlying benefit, e.g., a medical plan? Also, must a sec. 125 plan advise participants in the underlying plan's SPD that the plan is a sec. 125 arrangement?

Posted

The ERISA legal council that I have always dealt with takes the position that a Section 125 Plan is a separate plan requiring a plan document and SPD. I always make mention of the Section 125 Plan pre-tax premiums in our medocal and dental plan SPDs.

By the way, the instruction for Form 5500 describe a Section 125 plan as a fringe benefit plan required to file and to attach a Schedule F "Fringe Benefit Plan Annual Information Return.

Fringe benefit plan check item 6d of page 1 of the 5500, which instructs you to attach Schedule F.

I would happy to share my 125 document information with you if you will e-mail me.

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