UPCOMING DEADLINE TO AMEND YOUR FLEX PLAN: JUNE 30, 2011
To ensure that the health care flexible spending account under your Code section 125 cafeteria plan remains a tax-free benefit, you must amend your plan to conform to the new rule that prohibits tax-free reimbursement of non-prescription medications. The amendment must be adopted no later than June 30, 2011, and be retroactive to January 1, 2011.
If you have not yet amended your cafeteria plan document as required, you may do so by completing this Cafeteria Plan Amendment Form.
This change in the law also applies to health reimbursement accounts ("HRAs") and health savings accounts ("HSAs"). So, an employer-sponsored HRA should also be amended by June 30th.
If you have any questions or concerns about the required amendment, please contact a member of Oppenheimer’s Employee Benefits Group.
This alert is a copyrighted publication produced by Oppenheimer Wolff & Donnelly LLP. The information contained in this alert is of a general nature and is subject to change. Readers should not act without further inquiry and/or consultation with legal counsel.