What are the filing requirements for welfare benefit plans?
A “funded” welfare plan (a plan with assets held in trust, such as a VEBA) is always required to file Form 5500, regardless of the number of employee participants. An “unfunded” welfare plan (a plan with no assets, which pays benefits from the general assets of the plan sponsor, from an insurer or a combination thereof) must also file Form 5500 unless it qualifies for an exemption. There is an exemption for unfunded plans with fewer than 100 employee participants. If a plan qualifies for this exemption on the first day of the plan year, then no Form 5500 is required.
