This is the second in a 2-part series on cafeteria plans. Click here to go back to Part 1. If you have questions about cafeteria plans or any small group coverage, please give us a call at 1-800-867-0800 or send us an email at jkatz@vamedicalplans.com. We will be happy to help. What are the Special Rules for Premium Conversion Plans? A premium conversion cafeteria plan (POP) — but not a
Cafeteria Plans, Part 1
A cafeteria plan is a separate written plan maintained by an employer for employees. A plan is a cafeteria plan if it meets the specific requirements and regulations of Section 125 of the Internal Revenue Service (IRS) Code. Cafeteria plans provide employees who participate the opportunity to receive certain benefits on a pre-tax basis. Cafeteria Plans can be an attractive benefit for employers to offer their employees, and we work
Flexible Spending Accounts (FSAs) Now Allow $500 Carryover
In good news for consumers, last month the US Department of Treasury and the Internal Revenue Service (IRS) announced a change to the “use-or-lose” rule for Health Flexible Spending Arrangements — also known as Flexible Spending Accounts or FSAs. (Read the full notice here.) What is a Health Flexible Spending Account (FSA)? When considering which benefits to offer its workforce, an employer may choose to offer the option of a
