Does IRS require an open enrollment period ?
Posted 10 December 2007 - 01:38 PM
Also, does IRC state the minimum and maximum number of days the open enrollment period can be?
Can anyone direct me to the various open enrollment rules that employers are required to communicate to employees?
Posted 10 December 2007 - 04:04 PM
Edited by QDROphile, 10 December 2007 - 04:09 PM.
Posted 10 December 2007 - 07:37 PM
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Posted 14 December 2007 - 07:30 PM
Most plans take the opportunity to commence an organized open enrollment, a period of time that allows plan changes to be communicated to employee participants, and for employees to make necessary election changes based on changes in plan options.
Payroll departments must do their administrative magic before the first pay period of the new plan year (emergency extended enrollment periods not withstanding) in order for pre-tax plan deductions to take place during the plan year.
Open enrollment could take place in July for a calander plan year and not be out of compliance. No IRS or DOL regulations prevent it. But open enrollment that far in advance of the new plan year and the anticipated expenses would not be as practical for participants as a 30/60/90 day election period prior to the new plan year being date. A July enrollment might effect participation, with elections that far in advance of particiapnt's anticipated expenses.
all of the above assumes concensus with the principal that Sec. 125 benefits consist of employee elected benefits
Edited by LRDG, 14 December 2007 - 08:06 PM.