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Summary Annual Reports


Guest Mfcavo

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Posted

Does a cafeteria plan which is used solely for employee contributions to various welfare plans for funded solely by insurance have to distribute summary annual reports? We did file a 5500 for this fringe benefit plan.

Posted

No a SAR only applies o "welfare benefit plans under ERISA. A POP is a fringe benefit plan under the Code.

Posted

The cafeteria plan does not have to issue SARs to participants (a cafeteria plan is not really a plan in and of itself ... it is simply a "method" by which employees can PAY FOR CERTAIN BENEFITS, offered through employer welfare benefit plans, WITH PRE-TAX $DOLLARS).

However, each welfare benefit plan must issue a SAR to participants.

Posted

Thanks for your answers. Does POP stand for "premium only plan"? If a plan offered dependent care and medical reimbursement benefits, would the plan be a welfare plan under ERISA and therefore required to prepare an SAR?

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