Tag: Section 125 Cafeteria Plan

Question: When an employee changes a benefits election mid-plan year, does the § 125 cafeteria plan require the employee to sign an authorization form that contains the pre-tax cafeteria plan language? Answer: Section 125 plans are allowed to take passive enrollment, meaning no document is required, as long as the employee has been informed of the process…

Question: We were told that the only way we could provide tax-free benefit reimbursements to employees is through a Section 125 plan. Most of our employees have their own plans through the Marketplace. How do I set up a plan for reimbursement under Section 125? Answer: Section 125 cafeteria plans require that the employees have the potential…

Question: We have an employee with a medical issue who is currently on Medicaid that he will lose soon.  Will this create a qualifying event for him to come onto our plan?  (He can’t be without coverage). Answer: Mid-year election changes under the Section 125 cafeteria plan rules are allowed for status or cost/coverage changes…