Section 125 Basic definition

afelkins

[font size="1" color="#FF0000"]LAST EDITED ON 09-05-03 AT 12:22PM (CST) by jrobb (admin)[/font][p]I have an employee that wants to cancel his section 125 coverages with AFLAC. He doesn't want to just take it from me that he cannot drop his pre-tax coverages without a change in family status or during open enrollment. He wants to see the regulations/rules and know where this rule came from. I went to irs.gov and businesslaw.gov title 26 section 125 and I am not finding anything that is just plain and simple as to what a section 125 is and what regulations there are to get out of a section 125. I need something I can give to this employee. He signed a line on the AFLAC enrollment form that appears after it says "In addition, I understand that any pre-tax elections cannot be changed or revoked prior to the next plan anniversary date unless due to a change in family status and permitted by my employer." I quoted that to him but he still wants to see the defined term himself.
Do you have any suggestions or help for me?
Thanks for your help

Pearce

Stop doing the research. Give him another copy of your Summary Plan Description for your 125 plan. It should clearly state when changes may be made.

Nrdgrrl

From IRS.gov, the offical IRS website:

[url]http://www.irs.gov/faqs/page/0,,id=83301,00.html#3[/url]

Change in Status Elections
Question: What additional information is available on this issue?
Answer: Treasury Regulation 1.125-4 contains the provisions for change in status events. In addition, a text prepared by the Office of Chief Counsel discusses various change in status events and the specific sections of the regulations that address the change in status events.

Treas. Reg. 1.125-4 (Jan. 10, 2001 and Mar. 23, 2000 combined) -- Permitted election changes (92KB)

Introduction to Cafeteria Plans Text (18KB)

Sha Sha

Give him another copy of his Salary redirection agreement and leave it at that...he signed it PERIOD!