Benefits & ERISA Law

No Plan Document Requirement for Qualified Transportation Fringe Benefits

By Suzanne Wynn

One of the reasons I write plan documents for a living is because they are so interesting. Each plan document is like writing a novel, and a good plan document reads like a good novel. The other reason I like writing plan documents for a living is that the IRS requires a plan document for just about every type of qualified retirement, fringe or pension benefit.

Qualified Transportation Fringe Benefits are one of the exceptions to the written plan rule. Treas. Reg. 1.132-9(b), Q&A-6 states:

Q-6. Must a qualified transportation fringe benefit plan be in writing?

Should a qualified transportation fringe benefit plan be in writing - absolutely. Some type of document memorializing what qualified transportation benefits are being provided to employees, which employees are eligible for the benefits, and how they apply for the benefits, makes it much easier to consistently communicate and administer this type of benefit.

Technorati Tags: Pension Protection Act, ppa, qualified transportation, 132(f), fringe benefit, ERISA

Full post as published by Pension Protection Act Blog on January 23, 2008 (boomark / email).