I have a cafeteria plan for a non-profit church organization. It has 126 other related entities, Parish Churches and Parish Catholic Schools. Since it is a non-profit, there is no ownership and each entity is a separate legal entity.
Their cafeteria plan offers medical benefits and also health and dependent flex accounts (POP & Flex).
They would like to establish another cafeteria plan with only medical benefits, NO flex accounts, and offer this plan to the other related entities.
Can the non-profit sponsor 2 cafeteria plans and offer the plan with POP and Flex to the administrative staff and offer the plan without Flex to the other related entities?
I would appreciate any guidance on this issue. Thank You.