Section 125 Plan Document Template

Although most cafeteria plan documents include hipaa special enrollment rights under code section 9801 f many plans likely do not allow for a 60 day election period.

Section 125 plan document template.

Our automated and real time updates make staying in compliance a breeze. Irs code section 125 d 1 sets the section 125 plan document requirement for employers offering the option of paying for health insurance and other benefits with a pre tax salary deduction. Because of differences in facts circumstances and the laws of the various states interested parties should consult their own attorneys. Eflex a division of tasc has.

Also other code sections. For example the section 125 plan document may incorporate by reference benefits that are offered through separate written plans such as a health fsa without describing these benefits in full. Here is some basic information about the plan document. Irs requirement for pre taxed employee benefits.

The legal team we use specializes in erisa providing you with confidence you will always have the most legally compliant premium only plan pop plan. In the case of an insured plan the maximum amount reasonably available must be determined on the basis of the underlying coverage. Here are just a few things that go into a qualified section 125 plan document that one size fits all just can t do. A section 125 plan document contains all information on the plan including eligibility rules.

This sample form section 125 cafeteria plan summary plan document spd is an important document which should be carefully considered in light of the employer s particular circumstances. A 125 cafeteria plan is a written plan that allows employees to elect between permitted taxable benefits such as cash and certain qualified benefits. If an employee makes the election before the start of the plan year and other 125 requirements are satisfied the employee s election of one or more qualified. If you are an employer wanting to allow your employees to pay group health and other insurance premiums with pre tax salary deductions the answer is yes you need a section 125 plan document.

As is the case with our sample cafeteria plan documents since past special enrollment rights had only a 30 day timeframe. In most employer sponsored group benefit plans employees pay for health insurance and other qualified benefits with tax free dollars. Legal team specialzing in erisa. A town has a cafeteria plan section 125 plan which offers dependent care assistance.

An fsa cannot provide a cumulative benefit to the employee beyond the plan year. This document is intended as a. Sample plan document section 125 flexible benefit plan version 01 17 the attached plan document and adoption agreement are being provided for illustrative purposes only. Section 125 plan documents from pre printed downloaded or automated templates are unlikely to meet the requirements of all the bureaucracies overseeing section 125 plans.