Guest Posted September 17, 1999 Posted September 17, 1999 If a cafeteria plan has a short first plan year, are the contribution limits prorated? For example, if the first plan year is 11/1 to 12/31, are deferrals for DCA limited to $800 rather than $4,800?
SLuskin Posted September 17, 1999 Posted September 17, 1999 That depends on what the document says. Most sponsors will put something in the document and the SPD which talks about pro-rating. If the document is silent, you have to assume that there is not prorating.
Guest BENEFISH Posted September 20, 1999 Posted September 20, 1999 You might also confirm that your document limits your dependent care FSA to $4,800. Why not allow the entire $5,000 permitted by Section 129?
Guest WalterM Posted December 1, 1999 Posted December 1, 1999 Does a plan year have to match a calendar year? For example, can I run a plan year for the flexible benefits from 7/1 to 6/30 of the following year or do I have to stick with 1/1 to 12/31?
Guest CLKeown Posted December 2, 1999 Posted December 2, 1999 Walter, It is my understanding that you can use a fiscal year for some 125 benefits plans. However for tax reporting purposes using the tax/calendar year is simpler.
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