Total Articles: 6
Deadline Looming To Amend Cafeteria Plans
The healthcare reform laws enacted a provision that restricts healthcare flexible spending arrangements (Health FSAs) and health reimbursement arrangements (HRAs) from reimbursing amounts expended by participants and their dependents in various ways.
Reminder: Cafeteria Plans May Need to be Amended for Health Care Reform Over-the-Counter Requirements
If you sponsor a cafeteria plan and have not yet amended your plan to comply with the new requirements for over-the-counter drugs, you have until June 30, 2011 to adopt the necessary changes.
IRS Steps Up On Cafeteria Plans.
Nearly a quarter century after the Internal Revenue Service (IRS) started releasing piecemeal proposed regulations on cafeteria plans, employers now have new, updated guidance from the IRS on important topics such as nondiscrimination testing and debit card programs. Not final regulations, mind you, but at least a new set of coordinated proposals to replace the old ones.
IRS Issues New Proposed Cafeteria Plan Regulations.
The IRS has issued new proposed regulations relating to the administration of Section 125 cafeteria plans. The new proposed regulations consolidate and withdraw prior proposed regulations and replace a temporary regulation that was previously withdrawn. The new proposed regulations generally preserve many of the rules already in place, but provide clarification on certain issues that have arisen since the prior regulations were published.
IRS Steps Up On Cafeteria Plans.
Nearly a quarter century after the IRS started releasing piecemeal proposed regulations on cafeteria plans, employers now have new, updated guidance from the IRS on important topics such as nondiscrimination testing and debit card programs. Not final regulations, mind you, but at least a new set of coordinated proposals to replace the old ones.
IRS Permits Grace Period for FSA Claims (pdf).
On May 18, 2005, the IRS issued Notice 2005-42
permitting cafeteria plans to add a 2½- month grace
period to the "use-it-or-lose-it" rule that applies to
Flexible Spending Accounts ("FSAs").
