Cafeteria Plan- Participation Question

rachd

We have a situation which we are unclear about. An employee terminated in March and had already been a participant in the cafeteria plan but hadn't used up their medical expense account. This employee was rehired in October. The plan document states that they cannot reenter the plan until the next plan year but we are wondering if they can use the money that is still in their medical expense account- for claims after their rehire date? (we do know that they could still use that money for expenses incurred before their term date) Any input would be greatly appreciated!!

Thanks,

Rachel

makmhic

Because laws are always changing, I would recommend you go to the IRS Website and ask the IRS that question. They'll respond by Email and you'll have documented evidence of the response.

rachd

Thanks for your response! I had checked out the IRS website but never found any helpful information on there. Could you please provide the link showing where I could email them a question? I looked all over again and was unable to find anything.

Thanks!

Rachel