Flex Spending enrollment for new hires

[SLuskin]

What does the plan document say? Some documents allow new hires to enroll after some sort of probationary period until the end of the plan year. Some documents restrict enrollment to plan anniversary.

[Guest L. Shultz]

In previous years, we have allowed our new hires to join our Flex Spending Plans at the time they are hired. Late last year, during our open enrollment period, we were advised by our Flex Spending TPA that due to changes in the interpretation of IRS regulations, new hires (effective in the year 2000) must wait until the open enrollment period to join the Flex Spending Plan. i.e. employees hired after 1/1/2000, must wait until the open enrollment for 2001 before they can join the plan. I would welcome any comments on this interpretation.

[Lisa Hand]

Did your TPA needs provide you with specific documentation on that? Was your plan document updated to reflect the change?

[Guest msearle]

It's my understanding that you follow the Plan document; if it allows new hires to enroll upon completion of so many days of work, I see no problem with it.

------------------