When employers hear about Form 5500 filings, they often assume the requirement only applies to retirement plans like 401(k)s. However, many health and welfare benefit plans may also be required to file a Form 5500 under ERISA. Because this requirement is not always well understood, employers often unintentionally overlook the filing.
In general, health and welfare plans must file a Form 5500 when the plan is subject to ERISA and has 100 or more participants at the beginning of the plan year.
Plans that may fall into this category can include:
- Medical
- Dental
- Vision
- Life
- Accidental Death and Dismemberment
- Short-Term Disability
- Long-Term Disability
- Health Reimbursement Arrangements (HRAs)
- Flexible Spending Accounts (FSAs)
One of the most common areas of confusion comes from how benefits are structured. Many employers offer multiple benefits through different carriers and assume they are all part of one plan. However, insurance policies and benefit booklets typically do not meet ERISA’s requirements for a formal plan document. Without a governing document that consolidates the benefits, each benefit could potentially be treated as a separate ERISA plan, which may create additional reporting obligations.
This is why many employers implement a wrap document to combine their welfare benefits into a single ERISA plan. A wrap document establishes the official plan structure, helps ensure that ERISA documentation requirements are met, and can simplify Form 5500 reporting by allowing multiple benefits to be reported under one plan.
Because benefits often evolve over time as employers add new offerings, it is important to periodically review plan documentation and filing obligations. A proactive review can help identify potential compliance gaps and ensure that required filings are completed accurately and on time.
