How JustAnswer Works:

  • Ask an Expert
    Experts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional Answer
    Via email, text message, or notification as you wait on our site.
    Ask follow up questions if you need to.
  • 100% Satisfaction Guarantee
    Rate the answer you receive.

Ask Lane Your Own Question

Lane
Lane, JD, CFP, MBA, CRPS
Category: Finance
Satisfied Customers: 3755
Experience:  Providing Financial, Tax & Business advice since 1986
Type Your Finance Question Here...
Lane is online now
A new question is answered every 9 seconds

I am in the process of filing our form 5500 for our welfare

Resolved Question:

I am in the process of filing our form 5500 for our welfare plans for 2012. We have voluntary dental and vision insurance for which their are less than 100 participants and is totally funded by the employee as a voluntary election. The employer contributes nothing. Overall, we have greater than 100 employees that are in our welfare program as a whole, but these voluntary insurances have less than 100 participants. Do we have to file a schedule A associated with the 5500 form since it is voluntary and not funded by the employer and has less than 100 participants?
Submitted: 1 year ago.
Category: Finance
Expert:  Lane replied 1 year ago.

NPVAdvisor :

Hi, do you mean Form 8955-SSA, Annual Registration Statement Identifying Separated Participants With Deferred Vested Benefits (formerly Schedule SSA (Form 5500)?

NPVAdvisor :

Still don't see you coming into the chat, so I'll switch to the Q&A mode ... maybe that will help

NPVAdvisor :

But if you are referring to the separated participants disclosure, you don't file that with Form 5500–SF. File the statement separately with the IRS.

NPVAdvisor :

Let me know if you have further questions

NPVAdvisor :

Lane

Expert:  Lane replied 1 year ago.
Our chat has ended, but you can still continue to ask me questions here until you are satisfied with your answer. Come back to this page to view our conversation and any other new information.

What happens now?

If you haven’t already done so, please rate your answer above. Or, you can reply to me using the box below.
Customer: replied 1 year ago.
I am referring to form 5500, annual return report of mployse benefit plan. Schedule a reports all insurance vendors that qualify.
Expert:  Lane replied 1 year ago.
My apologies:

If Form 5500 line 9a(1), 9a(2), 9b(1), or 9b(2) is checked, indicating that either the plan funding arrangement or plan benefit arrangement includes an account, policy, or contract with an insurance company (or similar organization), at least one Schedule A would be required to be attached to the Form 5500 filed for a pension or welfare plan to provide information concerning the contract year ending with or within the plan year.

If there's an ASO in place where you're funding it but the insurance company is only providing administrative service you do not, however.

Give me a litte more time here, but it appears that because the benefit would paid by an insurance account that's enough.

Still doing some research

Customer: replied 1 year ago.
The employee is funding 100 pct
Expert:  Lane replied 1 year ago.

OK here we go.

They'll meet the less than 100 rule under these conditions:

A small welfare plan has less than 100 enrolled employees on the first day of the plan year and has no trust.

A (1) welfare plan that (2) covers fewer than 100 participants as of the beginning of the plan year and is (3) unfunded, fully insured, or a combination of insured and unfunded is not required to file Form 5500.

Who is a “participant”?

"Participants" are:

1. Active employees covered by the plan.

2. Retired employees covered by the plan. This includes former employees who are receiving group health continuation coverage benefits under COBRA.

3. Deceased former employees who had one or more beneficiaries who are receiving benefits under the plan.

Dependents are considered neither participants nor beneficiaries. A child who is entitled to health benefits under a qualified medical child support order should not be counted as a participant.




And they will be considered voluntary plans under the following criteria:

An employer has a voluntary plan where:


  • no contributions are made by an employer;
  • participation in the program is completely voluntary;
  • the sole functions of the employer with respect to the program are, without endorsing the program, to permit the carrier to publicize the program to employees and to collect premiums through payroll deductions and to remit them to the carrier; and

The employer receives no consideration in the form of cash or otherwise in connection with the program (other than reasonable compensation, excluding any profit, for administrative services actually rendered in connection with payroll deductions).

The third bullet point is key. Endorsing a program may include defining eligibility, recommending the program, allowing contributions to go through a cafeteria plan, selecting the carrier, negotiating the terms, or assisting participants with claims. Any of this employer involvement may cause the plan not to be voluntary.



And finally, can be looked at as separate plans following these criteria:

A plan sponsor could create (1) one plan providing major medical benefits, dental benefits, and vision benefits, (2) two plans with one providing major medical benefits and the other providing self-insured dental and vision benefits, or (3) three separate plans. Governing documents and actual operations should be reviewed to determine whether welfare benefits are being provided under a single plan or separate plans.

If you don't use a wrap document to advise of these plans, and if employee communications refer to these plans as different arrangements, then you have a small, voluntary plan for the dental and vision. and would not need to do the schedule A.

If you've administered these plans as parts of the same plan, and the insurance company is not simply providing ASO services only, then you'll need to do the schedule A.





Lane, JD, CFP, MBA, CRPS
Category: Finance
Satisfied Customers: 3755
Experience: Providing Financial, Tax & Business advice since 1986
Lane and 2 other Finance Specialists are ready to help you

JustAnswer in the News:

 
 
 
Ask-a-doc Web sites: If you've got a quick question, you can try to get an answer from sites that say they have various specialists on hand to give quick answers... Justanswer.com.
JustAnswer.com...has seen a spike since October in legal questions from readers about layoffs, unemployment and severance.
Web sites like justanswer.com/legal
...leave nothing to chance.
Traffic on JustAnswer rose 14 percent...and had nearly 400,000 page views in 30 days...inquiries related to stress, high blood pressure, drinking and heart pain jumped 33 percent.
Tory Johnson, GMA Workplace Contributor, discusses work-from-home jobs, such as JustAnswer in which verified Experts answer people’s questions.
I will tell you that...the things you have to go through to be an Expert are quite rigorous.
 
 
 

What Customers are Saying:

 
 
 
  • I really was impressed with the prompt response. Your expert was not only a tax expert, but a people expert!!! Her genuine and caring attitude came across in her response... T.G.W Matteson, IL
< Last | Next >
  • I really was impressed with the prompt response. Your expert was not only a tax expert, but a people expert!!! Her genuine and caring attitude came across in her response... T.G.W Matteson, IL
  • I WON!!! I just wanted you to know that your original answer gave me the courage and confidence to go into yesterday's audit ready to fight. Bonnie Chesnee, SC
  • Great service. Answered my complex tax question in detail and provided a lot of additional useful information for my specific situation. John Minneapolis, MN
  • Excellent information, very quick reply. The experts really take the time to address your questions, it is well worth the fee, for the peace of mind they can provide you with. Orville Hesperia, California
  • Wonderful service, prompt, efficient, and accurate. Couldn't have asked for more. I cannot thank you enough for your help. Mary C. Freshfield, Liverpool, UK
  • This expert is wonderful. They truly know what they are talking about, and they actually care about you. They really helped put my nerves at ease. Thank you so much!!!! Alex Los Angeles, CA
  • Thank you for all your help. It is nice to know that this service is here for people like myself, who need answers fast and are not sure who to consult. GP Hesperia, CA
 
 
 

Meet The Experts:

 
 
 
  • Rakhi Vasavada

    Financial and Legal Consultant

    Satisfied Customers:

    2073
    Graduated in law with Emphasis on Finance and have have been working in financial sector for over 12 Years
< Last | Next >
  • http://ww2.justanswer.com/uploads/RA/rakhi.v/2012-7-3_14374_RakhiVasavadaL.64x64.jpeg Rakhi Vasavada's Avatar

    Rakhi Vasavada

    Financial and Legal Consultant

    Satisfied Customers:

    2073
    Graduated in law with Emphasis on Finance and have have been working in financial sector for over 12 Years
  • http://ww2.justanswer.com/uploads/BU/BusinessTutor/2012-2-2_115741_Kouki2.64x64.jpg Manal Elkhoshkhany's Avatar

    Manal Elkhoshkhany

    Tutor

    Satisfied Customers:

    1890
    More than 5000 online tutoring sessions.
  • http://ww2.justanswer.com/uploads/MY/MyVirtualCPA/2012-7-5_44024_cookmegan1.64x64.jpg Megan C's Avatar

    Megan C

    Certified Public Accountant (CPA)

    Satisfied Customers:

    1755
    Licensed CPA, CFE, CMA who teaches accounting courses at Master's Level
  • http://ww2.justanswer.com/uploads/JK/jkcpa/2011-1-16_182614_jkcpa.64x64.jpg JKCPA's Avatar

    JKCPA

    CPA

    Satisfied Customers:

    838
    Bachelors degree and CPA with Accounting experience.
  • http://ww2.justanswer.com/uploads/starside8/2010-2-16_55433_DSCN1175.JPG Eric's Avatar

    Eric

    Financial Manager

    Satisfied Customers:

    558
    Loan servicing, counseling and real estate expert. Foreclosure Expert and Financial Planner.
  • http://ww2.justanswer.com/uploads/FA/fastfile/2011-12-15_23139_Klein2011small.64x64.jpg R. Klein, EA's Avatar

    R. Klein, EA

    Accountant

    Satisfied Customers:

    397
    Intuit Ask a Tax Expert. QuickBooks Certified Pro Advisor (all editions)
  • http://ww2.justanswer.com/uploads/dkaplun/2009-05-17_173121_headshot_1_2.jpg Dimitry K., Esq.'s Avatar

    Dimitry K., Esq.

    Attorney

    Satisfied Customers:

    324
    NASD Licensed Rep, 1997-2001, Business Attorney