HRA Plan - 5500 reporting

My company is being asked to take over an HRA (section 105) plan.  The plan has never filed a form 5500. 

I am assuming they should be.  Secondly, if there are over 120 participants - would they need an audit?  I again am assuming yes.  I would be thankful for any assistance on this.

Thanks!

An HRA provides medical care, so as far as I understand, yes they would be reportable under ERISA. Are they trust funded (VEBA)?

I wish I knew about the VEBA - the company that set it up doesn't exist anymore.  So I don't know exactly what they did.

The company that sponsors the HRA funds each participant as they go.  

On 12/20/2023 at 10:57 AM, Nic Pospiech said:

I wish I knew about the VEBA - the company that set it up doesn't exist anymore.  So I don't know exactly what they did.

The company that sponsors the HRA funds each participant as they go.  

A VEBA is an ERISA trust (assuming this is not a governmental employer) that would contain funds and have an exemption letter. A pay as you go plan funded on an as-need basis from employer general assets would not indicate a VEBA.

Also if there's no trust-funded assets then there's no requirement under the 5500 instructions to audit the plan.

So, I finally have some more details...I think.

The plan in question does the following:

Makes deposits of a certain amount per employee per payroll (Employer Money)

Employees can Invest the funds and withdraw for Medical Expenses.

If the Employer is a Library - do they need to file a 5500?  What if it was a regular employer?

I think the plan was originally set up as a VEBA HRA upon inception - but with the company that established this...I really can't be sure.

any help would be appreciated.

Thanks!