Reports on the issuance of a Final Section 125 Cafeteria Plan Regulations by the United States Internal Revenue Service. Details and background of Section 125 cafeteria plan; List several modifications to the 2000 proposed regulations; Date of regulation effectivity....
The U.S. Internal Revenue Service (IRS) on May 12, 2020, provided relief for Section 125 cafeteria plans (cafeteria plans) through the simultaneous release ofNotice 2020-29andNotice 2020-33. The notices provide additional flexibility to participants, including those ex...
In Situations 2-6 above, the failure to comply with the substantiation requirements of the proposed cafeteria plan regulations results in the cafeteria plan’s failure to operate in accordance with its written plan or the failure to operate in accordance with Code section 125 and the proposed regu...
According to the IRS guidance, appropriate changes in Code § 125 Cafeteria Plan elections, including health FSA elections, will be deemed to be a "status change" under the Section 125 regulations pursuant to changes that will be made to those regulations effective retroactive to Mar...