Enrollment for unavailable employees

[Guest aearle]

I have searched this forum high and low, but can't seem to find the answer to my question:

Is it permissible (assuming the plan doc allows) to allow certain employees who are unavailable during the open enrollment (e.g., out of the country, hospitalized, on leave, etc.) to enroll in pre-tax benefits after the plan year start date? Obviously, the elections would have to be prospective, if this is even allowed. If it is permissible, where can I find supporting documentation in the regs or other IRS guidance?

Thanks!

[Sandra Pearce]

We open our enrollment for the plan year 60 days before the beginning of the plan year because we have many employees that travel for 30 days or more out of the country on company business. This is our, albeit imperfect, fix.

[papogi]

The code does not address this specifically. Since you are making the elections prospectively, you are abiding by the regs as much as possible, and have an arguable case for your procedures. My feeling is that you would be safe if the IRS looked at this, but again, this is not addressed in the code.

[Guest gdburns]

Thought that the election had to be prospective relative to the start of the salary reduction NOT the start of the plan year.

[jsb]

Using an electronic or telephonic enrollment system, your employees - anywhere in the world - are never more than a couple of seconds away. It's just a matter of planning and communication.

[Guest gdburns]

It might not be as simple as that.

What if neither the enrollers nor the TPA have such capabilities? What if the insurance companies require a written signature or an original signature? What if the approved applications have to be manually written? What if the Cafeteria Plan documents require a written and signed original Salary Reduction Agreement?

There are many other What ifs.. but it all boils down to whether or not electronic or telephonic enrollment etc is allowed and if even available.

[JanetM]

You still have five weeks to mail them papers for signature. Are they in the Antartic or somethinng?

[leevena]

We run into this all the time. No matter how much preplanning is done, there always seems to be someone out of the area, and sometimes out of the country. You can either use a fax machine, email the documents to them, or use the old fashion mail. It can be done relatively easily. With today's technology, I can't believe that someone is not available.