CONSIDERING SEPARATE SPDS ARE ONLY REQUIRED IF THERE ARE SEPARATE PLAN NUMBERS. IF ALL PLANS ARE UNDER 501, SHOULDN’T THE FSA BE DISCLOSED IN THE WRAP? ARE WE IN COMPLIANCE?

Yes, it is common to have separate SPDs that can be issued for multiple benefits within a plan. However, be sure you are not referencing a “plan document” as opposed to a separate summary plan description. Employers often prefer separate SPDs for FSA benefits, due to the fact that many employees are not participating in the FSA. Distribution of the SPD for the FSA is in that case limited to the participants in this program. Another alternative to this is to provide and maintain the FSA plan separately, and to not reference it in the SPD or combined Plan Document. This would require a separate ERISA plan number, and exempt the FSA plan with fewer than 100 participants from filing form 5500.