Search the Community
Showing results for tags 'Cafeteria plan'.
Found 8 results
-
Employee opts out of medical coverage for 2017 but elects general purpose health FSA coverage during open enrollment because he is covered under spouse's plan. Spouse terminates employment mid-year. Due to the change in status, the employee enrolls himself and spouse under employer's HDHP starting June 1 and wants to contribute to HSA starting then. Employee has exhausted health FSA balance. Can employee terminate FSA effective May 31 and start contributing to an HSA thereafter? I think not but cannot seem to find support either way. Any help is appreciated,
-
I must confess, being a qualified plan TPA, I know next to nothing about HSAs or Section 125 plans. My client has inquired about updating their 125 plan document; are these two plans, an HSA and a 125? Stupidity is not excuse.
-
May an employer impose a minimum balance requirement on the amount that an employee/participant may carryover from year to year in an FSA? For example, can an employer require that to carryover a remaining balance at the end of year 1 into year 2 the employee must have a minimum carryover balance of $10? I have reviewed Notice 2013-71 and other guidance- there appears not to be a direct answer on this. Any thoughts would be appreciated. -
The LLC is being taxed as a partnership. The majority owner's son is also an employee. Is the son allowed to participate in the cafeteria plan? From what I have read the LLC would need to be taxed as a C-Corp in order for owners to participate. Since this one is being taxed as a partnership the owner cannot participate. But do the code 318 owner attribution rules apply in this case and disallow the son from participating? Or would the son be allowed to participate and just be counted as a key employee?
-
Under Section 1.125-4(e) a mid year change is permitted when an employee or spouse "Becomes entitled to coverage (i.e. becomes enrolled)" in Medicare Part A or Part B. If an employee does not actually enroll in Medicare when first eligible, does the actual enrollment in a mid-year in a later year (say beyond age 70) qualify as a change permitting him to drop health care under the employer plan? Premiums are paid pre-tax under the cafeteria plan. I am wondering what the purpose of the parenthetical in the regs is and will it help this employee who has now decided he wants to enroll in Medicare, but he won't be covered in time for start of the plan year.
-
An employer is going to offer an HDHP (in addition to their “regular” health insurance plan) to employees, and will add an HSA to their cafeteria plan at the beginning of the year. (The health FSA will be limited for those participants with an HSA.) Can the employer contribute $100 per month to ONLY the employees’ HSAs that elect the single coverage HDHP, and pass nondiscrimination testing? It is my understanding it should pass the eligibility and availability tests. Further, in order to test for BOTH the utilization and the 25% key concentration test, BOTH employee pre-tax salary reduction contributions and the employer contributions will be added together and tested for both of these tests? And further, there is no nondiscrimination test that requires the employer contribution to just be considered alone?
-
An employer's cafeteria plan and underlying benefit plans excludes same sex spouses. In June 2014, the employer amends the plan to make same sex spouses eligible for benefits. Can the employer permit employees (who married their same sex spouses in 2013 or earlier) change their elections mid-year to add their same sex spouses to the plan? If so, under what provision of the proposed cafeteria plan regulations? It seems intuitive that these election changes should be permitted but I am not finding anything in the regulations to support this intuition. Does anyone have any thoughts?
-
Reinstatement after Termination for Nonpayment
Guest posted a topic in Health Plans (Including ACA, COBRA, HIPAA)
I know that under the FMLA, participants on unpaid FMLA leave have reinstatement rights immediately upon return to active employment, but what about other "terminations for nonpayment" -- For example, if someone is on non-FMLA unpaid leave or if someone's payroll amount is not sufficient to cover the employee share of the premiums? If that individual is terminated from coverage for nonpayment and later begins paying again... (1) Does that person have to pay up all arrearages before being reinstated? Or do they just have to pay going forward (and have their coverage canceled retroactively)? (2) What if that person has a qualified life event during the period he/she is not covered? For example, if that person got married during an unpaid LOA and seeks to be reinstated... would that person be eligible for an election change immediately upon reinstatement? (3) What if that person is terminated while on unpaid LOA and benefits were terminated for nonpayment... ignoring any other legal issues, would that person be entitled to COBRA if they were not participating on the date of termination?
