LIMITING USE OF FLEX CREDITS

[Guest Lori Senter]

Can an ER who provides flex credits stipulate that the credits NOT be used for FSAs?

[Guest Paul]

I am not aware of anything other than the discrimination rules that would prohibit the sponsor from limiting where a participant can allocate credits. In other words, as long as there are no discrimination issues, I believe an employer could say, for example, the employer credits can only be allocated to pay health plan premiums. Obviously the plan would have to have this restriction.

[Kirk Maldonado]

What does the plan say?

[Guest Lori Senter]

It's a brand new plan we're writing, so it doesn't say anything yet. We want to make sure we can do this before writing it in.