Guest bjg Posted January 8, 1999 Posted January 8, 1999 ERISA Tech. Rel. 92-01 seems to indicate that if you meet the plan assets regulations (15-day requirement) the DOL will exempt you from the reporting requirements for POP-only cafeteria plans. Does anyone agree? Also, if this is the case, then do you still have to file with the IRS?
Guest JPCMPLS Posted January 8, 1999 Posted January 8, 1999 I am not aware of any exemption from filing a 5500 with the IRS for a Section 125 POP as a "Code Section 6039D Fringe Benefit Plan". Even church plans must file. Fortunately, only limited blanks need to be completed for a fringe benefit filing.
Guest bswift Posted January 8, 1999 Posted January 8, 1999 bjg - cafeteria plans are required to file 5500s under 6039D and there is no exemption for pop arrangements. By the way, a cafeteria plan is not an erisa plan and there is no DOL requirement to file a 5500 for a cafeteria plan. it's merely a funding mechanism and doesn't provide for the benefit itself. hope that helps.
Guest bjg Posted January 9, 1999 Posted January 9, 1999 Thanks. The Release speaks to the DOL's enforcement of the reporting requirements under ERISA (not the Code). The issue aries where there is a failure to file 5500's and you are looking at what penalties might arise under ERISA. They are draconian: DOL states they are $30,000 per filing per year as a maximum ($300.00 per day). But the Release indicates the DOL will not enforce the reporting requirements with respect to cafeteria plans under certain circumstances described in the Release. They also discuss the trust requirement as well. [This message has been edited by bjg (edited 01-08-99).] [This message has been edited by bjg (edited 01-08-99).]
Lisa Hand Posted January 9, 1999 Posted January 9, 1999 The penalties you need to be concerned about are those from the Internal Revenue Service, $25.00 per day up to a maximum of $15,000 per return for failure to file or filing late without an extension.
Guest HIPAAdrome Posted January 11, 1999 Posted January 11, 1999 Bswift -- Keep in mind that the "funding mechanism" exception applies clearly only to premium conversion only plans. If the cafeteria plan also contains flexible spending accounts or also serves as the plan document for the underlying benefit, then you might have to file a 5500 for the cafeteria plan.
Lisa Hand Posted January 11, 1999 Posted January 11, 1999 HIPAAdrome: as was stated above ALL Cafeteria Plans must file a Form 5500 - no exceptions.
Guest HIPAAdrome Posted January 13, 1999 Posted January 13, 1999 Ooops, let me clarify. If the plan has anything other than premium conversion only, the DOL might require a 5500 in addition to the IRS. Therefore, you would need to worry about penalities from both the IRS and the DOL. If you failed to file a 5500, you would have to submit to the IRS with a reasonable cause statement AND enter the DOL's delinquent filer program. Sorry for any confusion.
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