Cafeteria Plan Requirements

jimbomt

[font size="1" color="#FF0000"]LAST EDITED ON 08-20-04 AT 11:04AM (CST)[/font][br][br]Due to funding reductions, I would like to implement a pre-tax employee contribution to the health insurance coverage during mid-year of the plan year. Currently we pay the full premium but financially this is no longer possible. Does anyone know whether this is permissible? After reviewing our plan document it appears this is allowable, but its still a little unclear. Does anyone have an answer to this question?

Thanks in advance for your help.


I was formerly known as jampc but had to register and it wouldn't let me use my old forum name.

Dutch2

Don't know about your state laws, etc, but according to the company that administers our cafeteria plan a compnay does not have to wait until year end to start such a program. I suggest you call such a company(s) in your area and hear their dog and pony show. Even if you do not use them,they should be able to tell you what you need to know.
Good Luck,
Dutch2

jimbomt

Thank you so much. That's what I thought and our insurance agent also thought so. Just wanted to be extra careful.