Proposed Regulations Under Code Section 125

A plan does not fail to be a qualified benefits plan merely because it includes an fsa assuming that the fsa meets the requirements of section 125 and the regulations thereunder.

Proposed regulations under code section 125. 3 those proposed regulations contain special rules with respect to flexible spending arrangements. A public hearing is scheduled for november 15 2007. For a complete understanding of the rules see the proposed regulations under code section 125.

What does section 125 of the internal revenue code provide. Ee 16 79 ee 130 86 reg 243025 96 and reg 117162 99 withdrawn. What is a flexible spending arrangement.

The treasury department and the irs issued today new proposed regulations for employee benefit plans under section 125 of the internal revenue code. The texts of the preambles to the proposed regulations are at 49 047 49 071 49 143 and 49 386 ç q 1. The plans called cafeteria plans allow employees to make a choice between receiving taxable cash compensation or tax free employee benefits such as health care dependent care and other.

Section 125 cafeteria plans modification of application of rule prohibiting. Qualified benefits include employer provided accident and health. A flexible spending arrangement fsa is defined in section 106 c 2.

Proposed regulations under section 125 of the code provide guidance on cafeteria plans. On may 7 1984 december 31 1984 march 7 1989 november 7 1997 and march 23 2000 the irs and treasury department published proposed amendments to 26 cfr part 1 under section. 2 49 fr 19321 may 7 1984 and 54 fr 9460 march 7 1989 respectively.

Under section 106 c 2 an fsa is generally a benefit program under which. Provision of chapter i of the internal revenue code other than 106 b 117 127 or l32. This document contains proposed income tax regulations 26 cfr part 1 under section 125 of the internal revenue code code.