IRS Relaxes Section 125 Election Change Rules, Expands Grace Periods and Carryovers
… well as HFSAs and DCAPs. The Notice also addresses issues regarding grace periods for claims reimbursement and provides details on previous guidance affecting high-deductible health plans (HDHP). Background Internal Revenue Code (IRC) Section 125 allows employers to adopt a written plan to let employees elect to pay for certain benefits, including group health plan coverage, on a pre-tax basis through salary reductions. Section 125 also permits employees to contribute pre-tax reductions to an HFSA or DCAP and certain other benefits. Employees generally cannot change cafeteria plan elections during the year unless they experience a change in status …
https://www.epicbrokers.com/insights/irs-relaxes-section-125-election-change-rules/