Nic Pospiech Posted December 18, 2023 Share Posted December 18, 2023 My company is being asked to take over an HRA (section 105) plan. The plan has never filed a form 5500. I am assuming they should be. Secondly, if there are over 120 participants - would they need an audit? I again am assuming yes. I would be thankful for any assistance on this. Thanks! Link to comment Share on other sites More sharing options...
Bug on my window Posted December 19, 2023 Share Posted December 19, 2023 An HRA provides medical care, so as far as I understand, yes they would be reportable under ERISA. Are they trust funded (VEBA)? Luke Bailey 1 The above is my opinion only, not anyone else's. I'm not a lawyer nor do I play one on TV. Link to comment Share on other sites More sharing options...
Nic Pospiech Posted December 20, 2023 Author Share Posted December 20, 2023 I wish I knew about the VEBA - the company that set it up doesn't exist anymore. So I don't know exactly what they did. The company that sponsors the HRA funds each participant as they go. Link to comment Share on other sites More sharing options...
Luke Bailey Posted December 26, 2023 Share Posted December 26, 2023 On 12/20/2023 at 10:57 AM, Nic Pospiech said: I wish I knew about the VEBA - the company that set it up doesn't exist anymore. So I don't know exactly what they did. The company that sponsors the HRA funds each participant as they go. A VEBA is an ERISA trust (assuming this is not a governmental employer) that would contain funds and have an exemption letter. A pay as you go plan funded on an as-need basis from employer general assets would not indicate a VEBA. Luke Bailey Senior Counsel Clark Hill PLC 214-651-4572 (O) | LBailey@clarkhill.com 2600 Dallas Parkway Suite 600 Frisco, TX 75034 Link to comment Share on other sites More sharing options...
Bug on my window Posted December 26, 2023 Share Posted December 26, 2023 Also if there's no trust-funded assets then there's no requirement under the 5500 instructions to audit the plan. The above is my opinion only, not anyone else's. I'm not a lawyer nor do I play one on TV. Link to comment Share on other sites More sharing options...
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