Cafeteria Plan Admin

[thepensionmaven]

We are qualified plan TPAs and I have been asked by one of my clients to quote on and/or take over the admin of their 125 plan.

Is there any testing other than the Section 125 eligibility test; the Section 125 Key Employee Concentration Test; and the Section 125 Contributions and Benefits Test?

Are these also the tersts that are performed on a premium-only plan.

Thanks.

[GBurns]

Are you saying that a "premium-only" plan is different from or is not a Section 125 plan ?

[thepensionmaven]

Are you saying that a "premium-only" plan is different from or is not a Section 125 plan ?

No, I am asking if the testing is the same for all types of cafeteria plans.

[Chaz]

Those are the only cafeteria plan nondiscrimination tests but there are other tests for the underlying benefits, such as the self-insured (and soon, under PPACA, fully insured) medical plan nondiscrimination tests, and life insurance and DCAP nondiscrimination tests.

[thepensionmaven]

Those are the only cafeteria plan nondiscrimination tests but there are other tests for the underlying benefits, such as the self-insured (and soon, under PPACA, fully insured) medical plan nondiscrimination tests, and life insurance and DCAP nondiscrimination tests.

Where can I find these?

[Chaz]

The self-insured medical plan nondiscrimination rules can be Treas. Reg 1.105-11, the DCAP rules can be found at Code Section 129 (there are no regs yet), and I don't recall off the top of my head where the life insurance tests rules are but they are probably somewhere in Code Section 79.