Do all cafeteria plans have to be amended by 1/1/2001?

[Guest Christie Banks]

Is it a requirement for all cafeteria plans to be amended by 1/1/2001, or do the final regs merely make it possible to amend for the new provisions?

[Guest Paul]

The new rules become effective for plan years begining on or after 1/1/01. So if plan is on a May 1st fiscal year, for example, the plan would be subject to the new rules 5/1/01. Since the regs were issued in 2 parts (i.e. final and proposed)I believe the IRS is taking the position as long as you tell people about the new rules, the plan does not have to be formally amended until sometime later.