Cafeteria Plans Short Answers Employers health FSA provides that any amount that is forfeited under the use it or lose it rule will be donated to charity of Employers choosing Does this health FSA meet the Section 125 rule XYZ is struggling financially In the past, it has offered employees leave without pay, but very few employees participated They are adopting a cafeteria plan to allow employees to purchase additional PTO For example, an employee currently earning $50,000 per year with two weeks of PTO could elect to reduce his salary by $1000 in exchange for an additional week of PTO Does this cafeteria plan meet the Section 125 rules Employee makes a salary reduction election of $1200 to Employers Health FSA for the 2018 plan year, which started on January 1 Employee also is enrolled in Employers insured group health plan for 2018 plan year On March 1, Employer announces certain changes to the group health plan that are effective immediately Specifically, the co pay for office visits will increase from $20 to $40, and the co pay for hospital visits will increase from $100 to $250 At about the same time employee learns she is pregnant As a result of these developments, employee believes her out of pocket medical expenses for 2018 will significantly exceed $1200 and she would like to update her salary reduction election for the remainder of the year accordingly Can she do this Tom participates in a cafeteria plan Under the plan, Tom elects health benefits of $1800 for the year, reducing his salary by $150 per month In March, Joe needs extensive dental work and files a claim for $1000 How much will the plan pay for this claim What happens if Tom terminates work on May 1 and makes no further salary reduction contributions 5 Suzi participates in a cafeteria plan, under the plan, Suzi reduces her salary $150 month and elects health benefits of $1800 In June, Suzi had not filed a claim for any health benefits and left her job What can be paid to Suzi when she leaves her job

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Cafeteria Plans Short Answers Employers health FSA provides that any amount that is forfeited under the use-it-or-lose-it rule will be donated to charity of Employers

Cafeteria Plans Short Answers

Employers health FSA provides that any amount that is forfeited under the use-it-or-lose-it rule will be donated to charity of Employers choosing. Does this health FSA meet the Section 125 rule? ___________
XYZ is struggling financially. In the past, it has offered employees leave without pay, but very few employees participated. They are adopting a cafeteria plan to allow employees to purchase additional PTO. For example, an employee currently earning $50,000 per year with two weeks of PTO could elect to reduce his salary by $1000 in exchange for an additional week of PTO. Does this cafeteria plan meet the Section 125 rules? __________
Employee makes a salary reduction election of $1200 to Employers Health FSA for the 2018 plan year, which started on January 1. Employee also is enrolled in Employers insured group health plan for 2018 plan year. On March 1, Employer announces certain changes to the group health plan that are effective immediately. Specifically, the co-pay for office visits will increase from $20 to $40, and the co-pay for hospital visits will increase from $100 to $250. At about the same time employee learns she is pregnant. As a result of these developments, employee believes her out-of-pocket medical expenses for 2018 will significantly exceed $1200 and she would like to update her salary reduction election for the remainder of the year accordingly. Can she do this? _________
Tom participates in a cafeteria plan. Under the plan, Tom elects health benefits of $1800 for the year, reducing his salary by $150 per month. In March, Joe needs extensive dental work and files a claim for $1000. How much will the plan pay for this claim? What happens if Tom terminates work on May 1 and makes no further salary reduction contributions?_________

5. Suzi participates in a cafeteria plan, under the plan, Suzi reduces her salary $150/month and elects health benefits of $1800. In June, Suzi had not filed a claim for any health benefits and left her job. What can be paid to Suzi when she leaves her job? __________