oriecat

I ran this through the Change of Status website (www.changeofstatus.com) and put it as a Significant Improvement of Benefit or Design, and it came back as no change allowed for FSAs. I'm not sure if you can run it through as something else and get a different answer, but that seemed most appropriate to me.

Unfortunately, no, to my understanding.

So then you just have to wait and make sure it gets paid for. If not, cancel it. I see no reason to treat this person any differently from any other QB. His place of "residence" is inconsequential.

So the participant went an entire plan year with no deductions and didn't bother to tell anyone until after the year was over? Why should they be reimbursed when they could easily gotten the situation fixed after the first incorrect paycheck?

I took it that he meant he has been their ins agent for a long time...

I can't get the user Profile Options section to work... is it just me? Edit - never mind - just me! My User Agent switcher was on and screwing with it... Ignore this. Unless you can learn from my mistakes.

Have they tried contacting the Broker who was supposed to process it as a transfer? I would attempt to get them involved and find out how this was supposed to work. We changed STD carriers just over a year ago, and both of our plans also have 12 month pre-ex conditions, but if you were covered under the prior plan for 12 months, it is waived, except for a no loss/no gain provision. Was there possibly a question on the claim form about having prior insurance?

I don't know of any documentation on it, but we had this happen last year, and according to our TPA, the change in election affects the entire year, so dates of service prior to the change can be paid at the higher rate. The change doesn't create a 2 month period at 1200 and a 10 month period at 2400, but changes the whole year to 2400. They don't track the annual election separately. That's how it worked for us anyway.

Oops, I missed that part. Sorry!

No, if the employers are not related, you have to pay the whole amount based on the salary you pay them. From Reg 31.3121(a)(1)-1 (3) If during a calendar year the employee receives remuneration from more than one employer, the annual wage limitation does not apply to the aggregate remuneration received from all of such employers, but instead applies to the remuneration received during such calendar year from each employer

Did the claim specify that it was because it was untimely, or did it give another reason for the denial? If it did say that, have you appealed it and sent a copy of the documentation you have that says 180 days?

No, she posted a new topic here: http://benefitslink.com/boards/index.php?showtopic=31253&hl=

leevena, I don't think he is asking how to get wet signatures, but how to deal with needing wet signatures when he wants to do electronic. Obviously if a wet signature is required under the plan, then I think the employer would deal with that by not having electronic enrollment!

Our forms say "Payroll Deducted Premium Benefits under IRC Sec 125 - Payroll deducted premiums will be deducted on a Pre-tax basis for the current and all subsequent plan years based upon this election form until a signed election revocation is provided by the participant." I've found the opposite to be true. When we required annual forms, many people would sign to decline coverage, but when I checked with them that they wanted to pay their premiums after tax, they said no, they want their premiums pre-tax, they just wanted to decline participation in the flex plan (meaning the FSAs). No matter how many times we explained at the meetings that pretax premiums ARE a part of the flex plan, this still happened constantly. Now we just get forms from people who want to renew or start their FSA and life is much easier. Rarely does anyone actually want to change from pretax to after tax premiums.

There is no W-2 reporting requirements for pre-tax premiums. You can optionally list the amount in Box 14.

Ok, I just sent it.

I have a spreadsheet that I get from our TPA to help with the non discrimination testing. Maybe you could plug the figures into there and see what it comes up with... PM me with your email address if you would like it a copy. I tried to attach it but it says I can't attach xls files.

I think it will depend upon what your plan doc and SPD already say.

Section 125(f) defines the qualified benefits for cafeteria plans. It says: "For purposes of this section, the term “qualified benefit” means any benefit which, with the application of subsection (a), is not includible in the gross income of the employee by reason of an express provision of this chapter (other than section 106 (b), 117, 127, or 132). Such term includes any group term life insurance which is includible in gross income only because it exceeds the dollar limitation of section 79 and such term includes any other benefit permitted under regulations. Such term shall not include any product which is advertised, marketed, or offered as long-term care insurance." So I'd say yes, 125 references 105 (not specifically, but it doesn't exclude it), so since they are allowed under 105, then they can be allowed under a 125 plan. I hope that helps.

This is a "Note" in the 2005 Pub 502 that pertains to this: http://www.irs.gov/publications/p502/ar02.html#d0e1776 "This rule applies only to the deduction for medical expenses. It does not limit reimbursements of medical expenses by employer-sponsored health plans that reimburse the cost of both prescription and nonprescription medicines."

Curiosity - since an HSA is already a tax-deductible plan it would not need to be run through a Sec 125 plan to achieve the tax savings, so is the purpose of combining just for ease so there is just one plan to deal with, or are there other reasons to do it this way, instead of having two separate tax advantaged plans?

This came in newsletter I get. Thought you 409A people might enjoy it... http://www.faegre.com/articles/article_1781.aspx

That's not really Blinky. He's yellow. Unless he would turn gray from being cooked?! Oh dear.

This one kind of works It's like he's hiding in shame.

At the bottom of the PM box there is an option that says "Add a copy of this message to my sent items folder " Did you check that?