Massachusetts Life Producer Practice Exam

In which ERISA reporting form can a description of a qualified plan's insurance contract be found?

1. Form 5500 Annual Return/Report

2. Form 8889 Health Savings Account

3. Form 1065 Partnership Return

4. Form W-2 Wage and Tax Statement

The correct answer is: Form 5500 Annual Return/Report

The correct answer indicates that information about a qualified plan's insurance contract can be found in the Form 5500 Annual Return/Report. The Form 5500 is a key annual reporting tool for employee benefit plans governed by the Employee Retirement Income Security Act (ERISA). This form is used to provide the Department of Labor, Internal Revenue Service, and Pension Benefit Guaranty Corporation with important information about a plan's financial condition, investments, and operation. Within the Form 5500, plan sponsors are required to include details about the insurance contracts related to the plan, such as policy types, coverage amounts, and premium payment details. This transparency is essential for regulatory oversight and helps ensure compliance with ERISA's mandates. The other forms listed do not pertain to qualified plans in the same way. For instance, Form 8889 is related to Health Savings Accounts, Form 1065 addresses partnership tax returns, and Form W-2 is used for reporting wages and tax withholdings for employees. None of these forms would typically include the specific details about a qualified plan's insurance contract as required by ERISA.