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Employee has a daughter going off to college. If he signs her up for the college health plan, can this be reimbursed through a Premium Reimbursement account? I can see how if the policy was for the employee it would work, but I'm not seeing anything for dependent only coverage.

A company will add an HSA option mid year. I don't know yet if this will be inside or outside their 125 plan. The main question being asked is can this trigger a change of election wherein and employee drops their FSA in favor of the HSA. I say it does not. My own question is can (or what's the use of) an employee have both an HSA election and an FSA. election?

Can they participate in a Cafeteria Plan? Subject to discrimination?

Situation: 1. Calendar Plan Year (Jan thru Dec) 2. School Year (Sept thru June) Newly eligible ee has already, before becomming eligible, paid for day care up front for an entire school year (school not associated with day care center). How should we handle a dependent care election in this case. Is the amount not eligible at all because it is already paid or can it be eligible because it is not yet incurred? What about the monies for next plan year already spent? Just elect what's for this year and then plan on the rest for next year?

Thanks. I think I'll choose to see it this way. It was taken into acount at the beginning but it was thought that the school would not accept the child. However, later on, after some testing, the younger than usual child was accepted into school.

Thanks. But the problem I see is that the kindergarten is not charging anything. It's a public school and the ee has already made an election for day care. Do you still think the interpretation can be broad enough for this?

This should be simple and probably is but I can't seem to find anything that would allow for a change of election in the case where a dependent child starts school. Is this a qualifying change event?

In part. I have people asking generally if there is any effect in any aspect. I mentioned COBRA because I was reading something about it but it did not seem to apply.

If any? COBRA?

Thanks. Do you have a link? I don't seem to be able to find those or at least what I find doesn't seem to address the issue. I can get it down to a more specific question on this. The proper term in this case is "dissolution". The company is being dissolved. Their plan and employees are being terminated and the employees are being rehired. The goal is to have it happen in July. So, the question is, is there any way or anything that implies the company could amend their plan to include the ability to accept claims for the old plan after the plan is terminated? The rules (from the EBIA manual section 36 D) seem very broad and unspecific on this and I know, for example, they could accept claims for a period after plan termination that exceeds the normal claims grace period. But specifically, the employer wants to know if claims could be incurred somehow after the plan termination date. There are apparently a lot of employees who have accumulated a lot of funds but had no plans to spend them in the near future and they may not be able to spend down in so short a time. Is there relief for them in this case?

What happens to a Cafeteria Plan if a company dissolves mid year? What if the company merges operations with another company? Where can I find some rules and regs on this sort of occurance? Thanks

For FSA's????

Correct. Correct also. We are plumbing. Good question. He just lives with her. No legal relationship. Might be a possibility.

Employee, spouse, dependent. However, are the definitions of those broad enough to apply to the mother in this situation: Employee is living with (not married to) a woman with whom he has fathered a child. The employee has a DCAP election. The woman loses her job and is now home to care for the child. The woman is neither married to the ee nor is claimed as a dependent. Is this a qualfying event for a change of election?

DCAP. Now is eligible for state assistance that pays for day care. Qualifying event for change of election? Thanks

Thanks. But what about employer contributions to a health FSA? Can those be changed somehow under these circumstances?

We have company that is reducing everyone's hours 20%. My understanding is that a reduction in pay such as this is not in and of itself a qualifying event for a (status) change of election. Rather, the change must be based on a change in eligibility for benefits (such as full time to part time) or a change in cost of benefits. It is unlikely that a company has written into their plan document that a pay cut constitutes a change in eligibility. If true, then is this written in the tax code somewhere (the client wants to know) or is it by implication; the fact that a change must be based on eligibility or cost and nothing else is mentioned? Perhaps is there something I'm missing and these employees can change their elections under circumstances I'm not aware of? Thanks Edit: I forgot to ask: What about contributions the company is making to these elections? Are there any circumstances such as this one under which the company can change these amounts?

Employer is changing insurance companies. Premiums might be about the same or lower. However, the deductible will be much higher (there was no deductible previously). My understanding is that this is a valid change of election event for the premium, but not for any medical FSA's. Is that correct or may a participant also change their medical FSA's to cover the increased deductible?

A woman with a Day Care election is going through a divorce. It has not yet been determined who gets to claim their son as a dependent on the tax return. Obviously this could result in an opportunity for a change of election later but do we need to be worried about her having this benefit now and then having to be liable for it if the father ultimately gains the son as a tax dependent? My intuition says no worries, just change the election when the divorce is final, but......?

Ha! This is truly a corporation of one. There is no board of directors per se, just the one person, who also owns 100% of the company. There are no other employees of any sort.

A corporation is composed of only one person who is the only officer, CEO, CFO, employee, whatever you want to call him and it is very likely that he will never hire someone or partner with anyone else. Seems unlikely, but is there any way for this person to benefit from a cafeteria plan in this case?

It's just a premium change every March. They did not want to have to go through and change the amounts in the accounting software every March unless they synced it with the plan year for the cafeteria plan elections (MFSA, DCAP, etc.). The insurance company was unwilling to change their March date for premium changes. I think I convinced the client it was better to make March changes than to manipulate the plan year.

Situation: Calendar plan year but insurance renews every March. The options as far as I can tell are: 1. Try to get the insurance company to to change their renewal date. 2. Just assume a lot of elections changes come March. What the employer wants to do is either.... a) A short 2 month plan year and then do plan years from March to February to match insurance. b) A long 14 month plan year and then match with insurance. I don't think those last two are even feasable or allowable are they? Any other options? The employer does not seem to want to do the first two but to my recollection, those are the best ways to handle it. Thanks.

My understanding is that one can claim medical, dental, or vision expenses if incurred outside the USA so long as such is not otherwise a violation of federal law in the USA even if legal in the other country. Correct?

An employer is giving everyone $600 up front for their medical fsa. How does this look/work on the payroll and should it go into a separate account? Thanks