Employee wants to drop dependent

[Guest AnthonyH]

Are employees allowed to drop dependents midyear according to section 125? In this case, an employee wants to remove dependents however the dependents have not become eligible for health insurance under another plan and are not being forced out due to age, the employee just wants them removed. I've heard conflicting information regarding whether or not this is allowed. Can anyone clarify?

[QDROphile]

Identify the source that says that an election under a section 125 plan to pay for dependant coverage can be dropped mid-year without an appropriate qualifying event and never trust that source again for information about section 125, or anything else. The irrevocability rule is so rudimentary and fundamental to section 125 that any source that gets it so wrong and advances such a wrong position does not have the self awareness, intelligence, integrity, or discretion to be trusted for anything. Maybe your first-grade child would get another chance, after some serious coaching.

[Guest AnthonyH]

That's what I thought too, and I reviewed section 125, but this employee is fairly important and I wanted to be certain I was correct.

[QDROphile]

Funny how the important employees are more likely to expect to be able to do what they want despite the rules. Or maybe the more important employees are the less likely to be concerned about what the rules are so they are more likely to ask the questions that no one else would need to ask.

[Guest Sieve]

Bad hair day, QDRO?

[QDROphile]

Medusa.

[jpod]

How "important" could this employee be if he/she wants to throw his/her kids out on the street naked, without health insurance. If those are the facts, I agree with the Section 125 analysis, but the stupidity of it makes me wonder whether they really are the facts.