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IRS Suspends Requirements to File Form 5500 and Schedule F for Section 125 Plans
On April 4, the Internal Revenue Service announced that employers sponsoring certain Section 125 cafeteria plans no longer need to file Form 5500 and Schedule F. (Schedule F is an attachment to Form 5500. Both documents collect information on the employers' plans.) The suspension takes effect immediately.
The practical implications of the IRS announcement differ, depending on the kind of Section 125 plan you sponsor.
- If you sponsor only a Premium Payment Plan, you no longer have to file Form 5500 or Schedule F each plan year.
- If you sponsor a Flexible Benefits Plan that includes a Health Care Expense Account with less than 100 participants at the beginning of the plan year, you no longer have to file Form 5500 or Schedule F each plan year.
- If you sponsor a Flexible Benefits Plan that includes a Health Care Expense Account with 100 or more participants at the beginning of the plan year, you must still file a Form 5500, but you do not need to complete the Schedule F.
If for some reason, you did not file Form 5500 and Schedule F in past years, you need not file now to cover those years. However, you must still perform non-discrimination testing, and you must still maintain a plan document on your Premium Payment Plan and/or your Flexible Benefits Plan. See IRS news release at http://www.irs.gov/pub/irs-news/ir-02-43.pdf.
All clients of BenefitPort Administrators' Section 125 Services should have already received a letter with this information. If you have not received your letter, please contact your broker or your designated administrator.
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