Available Document Types

1. Wrap Document

What it is: A wrap document (also called a "wrap plan" or "wrap SPD") consolidates multiple insurance policies and benefit plans under a single ERISA plan document. It "wraps around" your existing insurance contracts to create a unified plan structure.

When you need it: Most employers with group health insurance, dental, vision, life insurance, or disability coverage need a wrap document. Without one, each insurance policy would be considered a separate ERISA plan, each requiring its own compliance documentation.

Common use cases:

• Combining medical, dental, and vision coverage under one plan document
• Meeting ERISA's requirement for a written plan document when insurance certificates alone don't satisfy the requirements
• Simplifying administration by having one plan instead of multiple separate plans

2. POP (Premium Only Plan)

What it is: A Premium Only Plan is a type of Section 125 cafeteria plan that allows employees to pay their share of insurance premiums with pre-tax dollars. It's the simplest form of a Section 125 plan.

When you need it: Any employer that deducts employee contributions for health, dental, vision, or other insurance premiums from paychecks on a pre-tax basis must have a written POP document to comply with IRS requirements.

Common use cases:

• Employers offering group health insurance where employees contribute to premiums
• Organizations wanting to provide tax savings for employees (and reduce payroll taxes for the employer)
• Companies that don't offer FSAs but still want pre-tax premium deductions

Why it matters: Without a written cafeteria plan document, the IRS could disqualify the pre-tax treatment, resulting in back taxes, penalties, and interest for both the employer and employees.

3. FSA (Flexible Spending Arrangement)

What it is: An FSA plan document establishes a Flexible Spending Arrangement, which allows employees to set aside pre-tax dollars for eligible healthcare expenses (Health FSA) or dependent care expenses (Dependent Care FSA).

When you need it: Any employer offering a Health FSA, Limited Purpose FSA, or Dependent Care FSA must have a written plan document.

Common use cases:

• Employers offering Health FSAs for medical, dental, and vision expenses not covered by insurance
• Organizations providing Dependent Care FSAs for childcare or eldercare expenses
• Companies wanting to enhance their benefits package with tax-advantaged accounts

Key considerations: FSA documents must specify contribution limits, eligible expenses, plan year, grace period or carryover provisions, and run-out period for claims.

4. HRA (Health Reimbursement Arrangement)

What it is: An HRA plan document establishes a Health Reimbursement Arrangement, an employer-funded account that reimburses employees for qualified medical expenses and, in some cases, health insurance premiums.

When you need it: Any employer offering an HRA must have a written plan document that meets ERISA and IRS requirements.

Common use cases:

• Employers wanting to help employees cover out-of-pocket medical costs
• Organizations pairing an HRA with a high-deductible health plan (HDHP)
• Companies offering retiree medical benefits through an HRA

Key considerations: HRA documents must specify who is eligible, what expenses are reimbursable, annual allowance amounts, and whether unused funds carry over.

5. ICHRA (Individual Coverage Health Reimbursement Arrangement)

What it is: An ICHRA plan document establishes an Individual Coverage Health Reimbursement Arrangement, which allows employers to reimburse employees tax-free for individual health insurance premiums and other medical expenses.

When you need it: Any employer offering an ICHRA instead of (or alongside) traditional group health insurance must have a written plan document.

Common use cases:

• Small employers who find individual market coverage more cost-effective than group plans
• Organizations with employees in multiple states where administering group coverage is complex
• Companies wanting to give employees flexibility to choose their own health plans
• Employers with variable or seasonal workforces

Key considerations: ICHRA documents must define employee classes, allowance amounts by class, and integration rules with individual health coverage. Employees must be enrolled in individual health insurance to participate.

6. Qualified Transportation Plan Documents

What it is: A Qualified Transportation Plan (also called a commuter benefits plan) document establishes a program that allows employees to pay for eligible commuting expenses with pre-tax dollars.

When you need it: Any employer offering pre-tax commuter benefits for transit passes, vanpooling, or qualified parking must have a written plan document.

Common use cases:

• Employers in urban areas where employees use public transit
• Organizations providing parking benefits at or near the workplace
• Companies wanting to offer an additional tax-advantaged benefit to employees

Eligible expenses include:

• Transit passes (bus, subway, train, ferry)
• Vanpool expenses
• Qualified parking at or near work or at a location from which employees commute

Note: Bicycle commuting reimbursements are currently suspended for tax purposes through 2025 under the Tax Cuts and Jobs Act, though some employers still offer them as taxable benefits.

7. SPD (Summary Plan Description)

What it is: A Summary Plan Description is a document required by ERISA that explains the key features of an employee benefit plan in plain, understandable language. It tells participants what the plan provides, how it operates, and what their rights and obligations are.

When you need it: ERISA requires employers to provide an SPD to participants within 90 days of when they become covered by the plan (or within 120 days of a new plan's effective date). Updated SPDs (or Summaries of Material Modifications) must be provided when significant plan changes occur.

What an SPD must include:

• Plan name and type
• Employer and plan administrator information
• Eligibility requirements
• Description of benefits
• How to file claims and the claims appeal process
• Circumstances that may result in disqualification or denial of benefits
• ERISA rights statement

Common use cases:

• Providing new employees with required plan information during onboarding
• Updating participants after plan changes
• Fulfilling DOL (Department of Labor) compliance requirements