Separate plan years for premium conversion/flex elections

[Guest bshanbrom]

Is it permissable to have separate plans or plan years for the premium conversion vs. unreimbursed medical/dep. care portions of a 125 plan? The employer's health plan renews in August and will require an adjustment to the premiums withdrawn pretax from employee salaries. They would, however, like to continue allowing employees to make changes to their flexible spending accounts on a calender year. Any information on what the regs say about this? Believe it or not, their current 125 administrator doesn't know the answer to this.

[papogi]

Based on my understanding of Section 125, you can do this. You would have a flex plan set up for all of your non-FSA benefits (premium conversion, as you said), then a separate plan for the FSA portion. They can be separate.

[mroberts]

Is there any chance in getting a short renewal on the medical? It seems like it would simplify things at least a little bit if it was all in one plan document. Otherwise, follow papogi's advice.