5500 forms

DeidreFR5 · April 2003

I'm embarrassed to ask this question. Every year about this time I start haunting our benefits providers to prepare 5500 forms. I collect them and send what I receive off to our accountants. But could someone tell me what they actually are, who has to do them (in recent years I have had some providers tell me they are no longer necessary for certain benefits) etc. Thank you!

Scott Ruth · April 2003

Form 5500s are kind of like the tax return for the plan. Because there are no taxes involved, though, it is really just an information return, called the "Annual Report" under ERISA. They are required of most retirement and welfare benefit plans subject to ERISA. They have also been required for some non-ERISA plans, such as a premium only cafeteria/Section 125 plan. This was a minimal filing, consisting of primarily the Schedule F, but recently the IRS has said that Schedule F is no longer required for certain plans. For some plans, the elimination of the Schedule F requirement may mean that a Form 5500 is no longer required. Caution is advised here, though, because if your cafeteria/section 125 plan is linked up with or includes another plan subject to ERISA, the Form 5500 will still be required. Such a plan would include a health plan or a healthcare flexible spending account associated with the plan.

Form 5500s are complex and the penalties for not filing can be severe, so make sure you get specific advice about your particular situation before you stop filing any forms.

I hope this helps.

DeidreFR5 · April 2003

Thank you!

AprilShowers · April 2003

Wow! I sure learned something there! I also thank you.

JRecore · November 2003

Very informative but your response makes me question what I have been doing based on information received from our Accountant.

These are our plans:
Self-Funded Medical - 50 particpants (Under 100 Employees in all)
Self-Funded Dental Plan - 55 participants
Section 125 Premium Offset Plan
Flex - Unreimbursed Medical and Dependent Care

I was filing a 5500 up until the Schedule F went away but I under that because we have less than 100 employees that are eligible for any of the above, we are no longer required to file.

I've also been told by one individual that even if we don't have to file every year, we have to file every 3rd year.

What is your take on the above?

5500 forms

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