Section 125 Elections

C Wilson

[font size="1" color="#FF0000"]LAST EDITED ON 12-28-06 AT 02:20PM (CST)[/font][br][br]Are employees fill out a new section 125 election form each year? If so is it done at the beginning of the calander year or the beginning of the plan year?

Irie

I have our employees complete a new election form at the beginning of each plan year. Just to make sure all information we have is correct.

NaeNae55

We require employees to complete a new election form every year. I thought this was IRS required, but I might be wrong. I do know that the form must be signed and dated PRIOR to the beginning of the Plan year. If your plan is 1/1 to 12/31, then elections must be made by 12/31 of this year for the 2007 year.

Good luck!

Nae

E Wart

125 "POP" forms are completed only each time the employee completes a new/change group insurance form. If they don't change their group insurance for five years (and we haven't had a re-enrollment where all have to re-sign up), they would have only filled out one in 5 years, unless they made a change during this period.
E Wart

NeedCoffee

Changes are made before the start of a new plan year, and new forms only need to be filled out if there are changes.

Also be sure to obtain forms with the signatures of ee's who have waived all programs.

dbutton111

Are you talking about Flexible Spending Accounts? Beginning of every year you should hold an open enrollment. Enrollments in FSAs must be made. Passive enrollments are not allowed, employees must make an affirmative election each year.

Most companies set the plan up on a calendar year basis regardless of when their insured benefit plan year is. For example, our FSA elections run from 1/1 to 12/31. But our insured benefits run from 3/1 to 2/28.

NaeNae55

I hope we did not confuse you by our different responses. We are actually talking about 3 different types of section 125 plans. I hope I can clear it up below.

We do not make employees complete any forms for the section 125 portion of the health insurance plan. Employees are automatically re-enrolled every year (unless they make a change) and are also automatically enrolled in the section 125 plan unless they opt out in writing.

I assumed, perhaps mistakenly, that you were talking about a medical reimbursement or dependent care plan, which is different. On those plans the employee must make a new election every year. I believe the IRS requires it.

Hope this helps.

Nae