Q.- We offer benefits on a calendar year. Our open enrollment period closed in December. We have an employee who forgot to enroll for benefits and now wants to get coverage. Can we let him in the plan?
A.- Maybe. You should consult your cafeteria plan (125 plan) document. Generally elections must be set for the entire plan year after they are made, and a change is permitted only if there is an IRS-approved life event recognized by the plan. Forgetting to enroll in coverage is not an IRS-approved life event.
If you have not yet reduced salary to pay for 2017 benefits, however, there may be some flexibility. You should consult a tax advisor with more specifics on the situation.
