Is a Summary Annual Report (SAR)required for a Section 125 Plan?

[Guest Lesley Sifers]

When, if ever, is a Summary Annual Report required to be provided to participants in a Section 125 plan? I have seen an SAR provided for a POP when the health plan had more than 100 participants. Have also been told:

SAR is required for a Medical Reimbursement FSA plan.

SAR should be provided because a 5500 is filed.

SAR used to be required for any Section 125 but no longer.

SAR is required for the underlying welfare benefit plans but not the cafeteria plan itself.

The more I research this, the worse it gets. Any help would be appreciated including a cite. Thanks

[Guest Paul]

A SAR is a requirement under Title I of ERISA. A cafeteria plan or premium only plan is a "fringe benefit plan" under Section 6039D of the Internal Revenue Code. Therefore, there is no need to do a SAR for a cafeteria plan or premium only plan. However, the underlying benefits are "welfare benefit plans" under ERISA and would be subject to the SAR requirements unless otherwise exempt.