Is a plan sponsor required by law to have a Wrap Document & SPD?

Federal law does not require plan sponsors to have a wrap document but failure to meet compliance standards can result in significant fines. Most employers who are subject to ACA reporting rules adopt a Wrap Document & SPD for ease of administration and to be certain that eligibility parameters are clearly defined as required by law. Other advantages include consolidation of IRS Form 5500 filing obligations and being certain that plan documents contain required language under the Employee Retirement Income Security Act of 1974 (ERISA).