Employees in Cafeteria Plan Can Move to Exchanges Mid-Year

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Until recently an employee participant in a cafeteria plan could only make mid-year changes to their elections within the plan if it fell within specific exception.  Previously, there was no exception allowing an employee to drop employer-sponsored health insurance coverage to purchase health insurance on a public exchange as part of the Affordable Care Act mid-year.

IRS Notice 2014-55 now includes language specific to employee participation in public exchanges.  An employee participant in a cafeteria plan can change their cafeteria plan election mid-year if the ...

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