"AskTony" column archive

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Form 5500 for small business

originally posted: 11/22/2006 reposted: 2/18/2011 This post has not been recently reviewed or revised by the author and may be out of date. If you notice an error or are in doubt, please send a new question by email or ask for an update. Email asktony@tonynovak.com.

Q: Does an HRA (35 employees) have reporting requirement ( Form 5500)? This is an employer-administered plan. Does the IRS Notice 2002-24 mean that an educational assistance (like Section 127) plan no longer needs to file Form 5500 or will have to file but with out Schedule F?

A: The instructions for Form 5500 make it clear that small business welfare plans (that provide health and education benefits) do not need to file a Form 5500. See http://www.irs.gov/instructions/i5500/ch01.html#d0e414 for more information. If the HRA provides uninsured benefits, then claim administration is required by a third party. The claim verification report is not filed with the DOL or IRS, but is required to uphold the tax-free status of these specific benefits. Additional resources on HRA plan accounting are available at www.FreedomBenefits.org.

Summary

More resources:

http://www.FreedomBenefits.org/HRA.htm