Cafeteria Plan Premium Reimbursement

dchr9203

Anyone know where I can find information to substantiate and validate our requirement that a cafeteria plan election for premium reimbursement requires a either a billing statement or invoice?

Thanks.

pork1

DCHR9203: This must be a real winner question due to the lack of responses in both categories.

I would read the provisions of our Cafeteria Plan, where I would expect to find the answer to my question, if I had a need. I believe that the authorization in the Federal Law for the implementation of a caferteria plan that allows for the contribution of pre-tax dollars to one's election, would also be where you should find the answer to your concerns. Additionally, I believe, that the re-imbursement of one's greater contributions from an annual plan is not appropriate. That is why must companies do not offer a great deal of categories beyond the 401K and Medical Premium in their Caferteria Plan. It is my belief that the money must be spent that is place into the PLAN accounts prior to the end of the business year. It can not be reimbursed.

After reading the Cafeteria Plan Document, if not there do an-online search for Caferteria Plans.

PORK

stilldazed

The answer will be in your SPD. IRS sets a minimum baseline requirement for burden of proof to the emloyee, and same provisions that apply to income tax deductions apply to cafeteria plan reimbursements--which is that the person claiming the tax credit/income tax deduction must be 'prepared' to show evidence in the event of an audit. However, employers in Sect. 125 situations have the option to require receipts to prove expenses vs. some sort of signed statement from the employee certifying that the deduction would be valid.

In case your SPD doesn't get that specific, it may be a good time to review and include that detail.

irenesmsaclaims

Premiums for insurance cannot be a part of the cafeteria plan, unless it's the "premium only" part. It is not permissible to run insurance premiums through the medical spending part of a cafeteria plan. Could you provide more details?