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Form 5500 instructions

IMPORTANT NOTE: The rules requiring the filing of Schedule F, and those requiring the filing of Form 5500 by plans that are not subject to ERISA (public sector, church and small employer plans) have been suspended indefinitely, and retroactively.

The current rules state that you should NOT file a Form 5500 for a Welfare Benefit Plans that covers fewer than 100 participants as of the beginning of the plan year and is unfunded, fully insured, or a combination of insured and unfunded. An unfunded welfare benefit plan has its benefits paid as needed directly from the general assets of the employer or employee organization that sponsors the plan.

A welfare plan with employee contributions that is associated with a fringe benefit plan under Code section 125, may generally be treated for annual reporting purposes as an unfunded welfare plan

While we do not practice law or provide tax advise, please contact us if you feel your Section 125 or other plans plan(s) may be subject to the rules that require the filing of an IRS Form 5500. You should be aware that there may be significant penalties for failure to file the Form 5500.

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