Companies that sponsor a welfare benefit plan and have over 100 participants at the beginning or end of the plan year are required to file a
Form 5500 Annual Report for health flexible spending accounts and health reimbursement arrangements if the plan had 100 or more participants during the plan year.
The Department of Labor (DOL) has transitioned to a new online system that requires employers to file Form 5500 electronically. Employer clients will continue have real-time access to all the necessary for Form 5500.
Visit the
DOL's website for more information.
An
HRA (Health Reimbursement Arrangement) is an ERISA plan. Thus, the employer must file a
Form 5500 annual if the plan had 100 or more participants in the plan year.
A
POP (Premium only Plan) is a Section 125 Cafeteria Plan. Internal Revenue Service (IRS) Notice 2002-24 suspended the
Form 5500 filing requirement for cafeteria plans. However, if the plan provides ERISA benefits, it is a welfare benefit plan and the employer must file a Form 5500 annual if the plan had 100 or more participants in the plan year.
The Form 5500 Series is an important compliance, research, and disclosure tool for the Department of Labor, a disclosure document for plan participants and beneficiaries, and a source of information and data for use by other Federal agencies, Congress, and the private sector in assessing employee benefit, tax, and economic trends and policies. The Form 5500 Series is part of ERISA's overall reporting and disclosure framework, which is intended to assure that employee benefit plans are operated and managed in accordance with certain prescribed standards and that participants and beneficiaries, as well as regulators, are provided or have access to sufficient information to protect the rights and benefits of participants and beneficiaries under employee benefit plans.
Visit the
DOL's website for more information on Form 5500.
It is important to file the Form 5500 by the due date. Failure to do so can result in fines of $1,100 plus per day the return is late.
