Section 125 FSA - Self-administration

[Guest dsw713]

Does anyone self-administer their Section 125 flexible spending account? If so, do you use any special software; what about nondiscrimination testing and plan docs?

We have 117 employees, about 40 participate in this program. Thanks.

[SLuskin]

Does anyone self-administer their Section 125 flexible spending account? If so, do you use any special software; what about nondiscrimination testing and plan docs?

We have 117 employees, about 40 participate in this program. Thanks.

There are many on this board who do administer flex plans (including us) who would recommend against this for 2 reasons. If it is not your core business, I am not sure how you would evaluate the tricky claims, and also how you would figure out if something is or isn't a family status change, etc?

[Guest parrot87]

Plan docs are easy, hire someone to write them for a few hundred dollars. As for discrimination testing, refer to the new IRS releases, they are fairly straightforward. An easy rule of thumb is, if your an HCE, don't participate. Note you'll have to do all the substantiation yourself as well.

[leevena]

Another suggestion that might be of help is to get a vendor who will provide you witht this service for free, or little cost. For example, a carrier or a local broker might be a source for these sources with little to no cost. I would try Colonial Life. Here is California they provide some of these services in return for the employer offering payroll deduction products.

[QDROphile]

Something for nothing is always a great idea, but it is never the reality. The cafetria plan itself is not an ERISA plan, but watch out for prohibited transactions around the ERISA edges.