Q.- Our FSA plan documents include the IRS mid-year change rules. An employee had a baby and now wants to cancel his health FSA contributions. Do we allow this?
A.- Maybe. While adding a dependent would be considered a permissible mid-year change event, a change under your plan must be consistent with the event. Typically adding a dependent would not be consistent with reducing health FSA contributions. You may want to gather more information from the employee before processing the contribution change.
Benefit Allocation Systems (BAS) provides best-in-class, online solutions for: Employee Benefits Enrollment; COBRA; Flexible Spending Accounts (FSAs); Health Reimbursement Accounts (HRAs); Leave of Absence Premium Billing (LOA); Affordable Care Act Record Keeping, Compliance & IRS Reporting (ACA); Group Insurance Premium Billing; Property & Casualty Premium Billing; and Payroll Integration.
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