Cafeteria Plan Changes

Within the past couple of months, two significant changes have been made to Section 125 cafeteria Plans. Below you will find links to notices explaining both changes.

The first notice expands the rules for mid-year election changes.  This expansions allows someone who has a reduction in hours to drop coverage even if the reduction doesn't cause the employee to lose elected coverage.  In addition, this rule allows someone to drop coverage in order to elect coverage on the exchange without having a period of non-coverage or double coverage.  This rule applies mostly to plans whose plan year is not based on the calendar year.

For more information, click here.

The second notice addresses the IRS announcement of the increase of the health care FSA contribution limit from $2500 to $2550 for 2015. You are not required to change your plan's FSA contribution limit, and if you elect to change your plan's FSA contribution limit, you may be required to amend your plan.  

For more information, click here.

As always, please do not hesitate to let us know if we can assist you in any way. 

This Legislative Brief is not intended to be exhaustive nor should any discussion or opinions be construed as legal advice. Readers should contact legal counsel for legal advice.  Design � 2013-2014 Zywave, Inc. All rights reserved. 6/13; BK 5/14