Eligibility

[Guest MSMA]

Just a quickie question today:

Does anyone know if FSA plans are restricted to just Full Time employees? I was under the impression that this was an area that was up to the employer much like the monetary cap.

Our SPD indicates "Full Time" but leaves the specific number of hours to qualify as FT open to each employer/member.

Thanks.

[mroberts]

The flex plan really shouldn't be treated any differently than any of your other plans. If a part-time employee is eligible for medical benefits or any voluntary benefits that allow pre-tax contributions, then he or she should be eligible for your flex plan.

As far as determining how many hours constitutes full-time, that's employer discretion. Fairly standard is 30, however, 35, 37.5 and 40 are common, as is the occasional 20 hours.

[papogi]

The IRS gives no guidance on this. Your plan should specify who is eligible for the benefit, so the ball is in the employer's court to clarify who is eligible, and to get that info added to the SPD.