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changes of sec. 125 MRA elections post open enrollment and/or after


Guest bryanb

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Is there any latitude under IRC regs for employees of a state governmental plan to change the election amount for their IRC 125 MRA election after the open enrollment period and/or after the first fo the year - eg., reason being an increase in HMO premiums for the new year?"

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I assume that you are referring to payroll deductions for the employee share of employer provided health insurance. If that is the case, then the answer is yes. The plan, if it is so written, may allow for changes due to premium increases or decreases that occur off of the plan anniversary. The rule is covered in Prop. Treas. Reg. 1.125-4(f)(2)(i)(2000)

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Joe is absolutely correct on the premium portion.

It is important to remember that a change in the medical plan cost or coverage does NOT open the door to make changes in the participant's election for their medical FSA. These rules apply to all 125 Plans.

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