An FSA is a qualifying benefit under a Section 125 plan, or cafeteria plan. Health FSAs are the most common type of flexible spending arrangement. You can offer FSA plans to employees as a standalone benefit or in conjunction with traditional health insurance or high-deductible health plans. ...
If a cafeteria plan does not require an independent third party to substantiate the expense, then the plan fails to operate in accordance with the proposed cafeteria plan regulations and the amount of benefits that employees elect under the cafeteria plan are includable in income as wages and sub...
Section 125 Cafeteria Plan rules dictate how an FSA works. They include the following rules: Employees elect their contribution amount.Employees choose an FSA annual contribution amount before the start of each 12-month plan year. Elections cannot be changed during the year, except in connection wi...
FSA — also called a flex plan, reimbursement account, Flex 125, Tax Saving Plan, Medical Spending Account, a Section 125, or a Cafeteria Plan — is an employer-sponsored benefit that allows you to pay for eligible medical expenses on a pre-tax basis. If you expect to incur medical expen...
A health FSA is treated as a qualified benefit, provided that the $125 cafeteria plan limits each employee’s salary reduction contributions to the health FSA to not more than $2,500 per taxable year. A participant can submit a claim for reimbursement of expenses for qualified benefits incurr...
Presents a letter from the United States Internal Revenue Service to Michigan senator Spencer Abraham regarding the claims substantiation requirements for health reimbursement benefits paid under a flexible spending account operated under a Section 125 cafeteria plan. Section 125 exclusions; Value of ...
Since 1993, Advanced Benefit Strategies has been the industry leader in Flexible Spending Account administration and Section 125, FSA Cafeteria Plans.
But remember,yourFSA administrator has the final say as to the exact guidelines for reimbursement according to your plan.I learned this the hard way when our FSA administrator switched one year from in-house to Conexis (now since acquired by WageWorks). Wow, Conexis was a pain. I had to ...
Susan Bernstein