Flexible Spending Account Extension

njjel

How many of your companys are planning to adopt the new law that will extend your FSA the 2 1/2 months? If you are not extending it, what were the reasons? (I've heard there is some tax consequence for the employer, but no one here knows what that would be.) We are in the midst of a decision here and need a quick response.

ray a

We are not going to allow the extension this year. Corporate thinks it will be too complicated to track.

awilliams

[font size="1" color="#FF0000"]LAST EDITED ON 09-29-05 AT 10:05AM (CST)[/font][br][br]We have covered this pros and cons of this issue extensively in our benefits newsletter, "Benefits and Compensation Law Alert." I suggest you talk with your benefits counsel before making a decision. There are certain steps your plan will have to take, and you can make an informed judgment after you learn what is entailed. If you do not have a benefits attorney, contact John Hickman (Jhickman@alston.com) and/or Ashley Gillihan (Agillihan@alston.com). They specialize in this area, are on the advisory board of the benefits newsletter, and wrote the articles on this issue.

If you need further contact information for them, please e-mail me directly.

Good luck and let us know what you decide!

Anne Williams
Attorney Editor
M. Lee Smith Publishers, LLC

njjel

thank you for that info. However we would still appreciate knowing the option other forum members took and their reasons. We do have our counsel working on this as well.

marc

We are extending. Amendments have been signed and we are just waiting for the head nod from our TPA that all is in place.

nietra

Our plan year runs from July 1 to June 30th and we adopted the new extention into the plan. We have a 3rd party administrator for the plan but I know they have had some snags in the process.

jmcaa

We did NOT adopt the extension to our Flex Plan. Our President feels that the extension just allows people to procrastinate longer.

Sue2

We have adopted the extension. Our plan amendment will be signed by our board of directors in a couple of weeks.

Dutch2

We are not extending our FSA plan. This is partially based on the recommendation from the outside firm that we use for our plan; but mostly based upon the fact that we have never had any problems with our ee's turning in their receipts in a timely manner on the current program.
Good luck,

Dfox

We chose not to adopt the extension.