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Section 125 - Flexible Spending Plan

JaxJax 11 Posts
in Benefits & Leave Vote Up0Vote Down
I have an employee who wishes to decrease the deferral for her dependent care benefit.

Her husband has been laid off since August 2002. When she elected for this benefit in January 2003, she believed her husband would be returning to work within the first quarter of the year. As it turns out, he may not be working this year at all.

Can she still submit a change in family status due to "termination or commencement of employment by my spouse" even though he was laid off the prior year?
Thanks for your help!
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  • sandra_dsandra_d 136 Posts
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    Read your plan document - I would guess that there is language in there about how long after an event occurs that someone can make a change. However, in this case, I'm virtually certain that a change should not be made. (She should have estimated conservatively, and when the spouse returned to work, make a change to increase withholding at that time ... returning to work is one reason for making a change in the pre-tax withholdings.)
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