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Posted

Employee elects to participate in an FSA during open enrollment. After the beginning of the plan year, the employee is promoted to position where she becomes eligible to participate in a taxable MERP-type benefit, which reimburses the same expenses as does the FSA.

Can the employee cancel the FSA election mid-year? I think the answer is no but I thought I'd see if anyone had any thoughts.

Any help is appreciated.

Posted

I always suggest that questions like this, be run through www.changeofstatus.com

While not authoritative, it has a good reputation and gives some logic for guidance.

My thought is that she might be able to IF the promotion changed her from hourly to salary. If not, then No.

George D. Burns

Cost Reduction Strategies

Burns and Associates, Inc

www.costreductionstrategies.com(under construction)

www.employeebenefitsstrategies.com(under construction)

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