QUESTION: Our firm has a certified transportation fringe profit plan below Code § 132(f) that enables individuals to pay for parking, transit passes, and vanpooling on a tax-free foundation. Are we required to file a Kind 5500 for this plan?

ANSWER: No. Kind 5500 (Annual Return/Report of Worker Profit Plan) is used to fulfill sure annual reporting obligations that come up below ERISA or the Code. ERISA § 103(a)(1)(A) imposes an annual reporting obligation on “worker profit plans” throughout the which means of ERISA, however that time period solely contains plans which are “worker welfare profit plans” as outlined by ERISA § 3(1) or “worker pension profit plans” as outlined by ERISA § 3(2). Certified transportation fringe profit plans might solely supply certified parking, transit cross, or vanpooling. (After 2025, these plans can also embrace bicycle commuting advantages that aren’t supplied as compensation discount preparations.) As a result of certified transportation plans don’t fall below both class (i.e., they’re neither worker welfare profit plans nor worker pension profit plans), they aren’t worker profit plans topic to ERISA’s annual reporting obligation.

Code § 6039D beforehand imposed an annual data return requirement on sure “fringe profit plans,” however certified transportation fringe profit plans weren’t included. In any occasion, the Code § 6039D reporting obligations have been suspended by the IRS (see our Checkpoint article).

As a result of neither ERISA nor the Code imposes an annual reporting requirement on certified transportation fringe profit plans, a Kind 5500 isn’t required for these plans. For extra data, see EBIA’s Fringe Advantages guide at Part XX.R (“Certified Transportation Plans: Are There Any Reporting and Disclosure Obligations?”).

Contributing Editors: EBIA Workers.