Plan Doc Questions

[Guest dl_c70]

I'm working on trying to get our plan doc in order and I'm getting some confusing information. Our fiscal year is July to June our doc says plan year ends June, but we have a calendar year deductible. It is not stated anywhere in the doc Jan to Dec. Our Sect 125 doc is Jan to Dec.

Our TPA says that by having a "calendar year" deductible that means our plan year is Jan to Dec, the reason June is listed is because that is our reinsurance renewal. I'm so confused. I thought a plan doc was supposed to spell out all of the details and not leave anything open to interpretation.

How do I fix this??????

[GBurns]

Do an addendum stating and clarifying the dates.

A vast number of the plans that I see have the same situation, it is very common, mainly because very few companies started their plan at the start of a calendar year and many companies have a fiscal year that is not calendar year. These coupled with the requirements that the employee makes an election for the year (usually regarded as calendar year) and that the W2 is for the calendar year and in the old days many states did not recognize the section 125 deduction and I think that NJ and a few still do not plus there is the 401(k) reporting .

The deductible has nothing to do with your plan year.

Did you check out this TPA before you hired them? I would have thought that they would have had enough experience to amend this simple matter without causing you any concerns etc.