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Coordinating cafeteria plan election period with health plan entry date


masteff

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Medical plan entry is first of month following 30 days after hire (so day 31 at earliest).

When does the employee have to turn in an election form by? 30 days after hire or some other date based on plan eligibility date?

Does your answer change if the plan entry is, say 60 days after hire?

Kurt Vonnegut: 'To be is to do'-Socrates 'To do is to be'-Jean-Paul Sartre 'Do be do be do'-Frank Sinatra

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Before the pay date from which the first salary reduction is made.. Not the date of the payroll but the date of the first earnings affected.

George D. Burns

Cost Reduction Strategies

Burns and Associates, Inc

www.costreductionstrategies.com(under construction)

www.employeebenefitsstrategies.com(under construction)

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Thanks, that makes sense and helps put Reg 1.125-2(a)(2) & (3) into simpler language.

Everything I found on the 30 day period in 1.125-2(d) referenced that it permitted new hires to make a retroactive election back to the date of hire if done w/ in the first 30 days.

Follow up question:

If medical has a 30 day wait but dental has a 60 day wait, is there anything in the 125 rules that would require the dental election be turned in early with the medical election rather than allowing it to be turned in prior to the pay period related to the dental coverage?

Kurt Vonnegut: 'To be is to do'-Socrates 'To do is to be'-Jean-Paul Sartre 'Do be do be do'-Frank Sinatra

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Sections 125 and 105 explicitly require prospective election, so the election must preceed the date on which the income is earned. To answer your question, the dental election does not have to be turned in early, but, by not doing so, you are complicating the enrollment etc. Why create unnecessary problems?

George D. Burns

Cost Reduction Strategies

Burns and Associates, Inc

www.costreductionstrategies.com(under construction)

www.employeebenefitsstrategies.com(under construction)

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