Adoption date of cafeteria plan

[alexa]

We have a cafeteria paln with dependent care & health care spending and pre-tax medical premiums effective 1/1/2004

Can the plan be adopted anytime before the end of 2004?

Or must it have been adopted priro to 1/1/2004?

We are an LLC

Can VP of HR execute plan document if not a member of LLC

Who tyically should sign the doc? must it be an officer ?

[g8r]

The IRS position (in the proposed regs) is that only expenses incurred after adoption of the plan can be covered.

As far as who can adopt, that really depends on state law. Who is authorized to take actions on behalf of the employer?

One other point -- Section 1372 may prohibit members who own more than 2% from participation in the plan. That depends on how the LLC is taxed (e.g., if it's taxed like a partnership then more than 2% members cannot participate).

[mbozek]

The proposed IRS regulations require that there be a written plan document without specifying who must execute the document. The company by laws will specifiy who can bind the company in the absence of board action. A corp officer could always sign a document subject to ratification by the board. Why not ask the company counsel for the answer?