Annual Form 5500 required for welfare plans for a company with fewer t

[Guest Bob W]

Do welfare plans for a company with 40 employees participating in the medical, dental, life, and disability plans require an annual 5500? It is my understanding that it is only for 100+ groups. Thanks for your help!

[Guest jlcowden]

Bob,

No 5500 due for employer with 40 EEs..unless there is a 125 plan, in which case a very simplified version is required.

[Guest Paul]

If a "welfare benefit plan" (e.g. medical, dental, group term life insurance) is (1) fully insured or unfunded (i.e. benefits paid out of employer's general assets) or a combination of insured and unfunded and (2) there are less than 100 participants (i.e. employees) in the plan on the first day of the plan year, the plan is exempt from filing a Form 5500 for that plan year. On the other hand, if the "welfare benefit plan" is funded (i.e. there is a trust) then you must file an annual report (i.e. Form 5500) regardless of the number of participants in the plan. Finally, as correctly noted above, an annual report must be filed for a "fringe benefit plan" (i.e. premium only plan or cafeteria plan) each year regardless of the number of participants. The type of plan (i.e. welfare benefit plan vs a fringe benefit plan) dictates which lines to complete and what schedules to attach to the Form 5500.