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Cafeteria Plan Amendments: A Year-End Action Item

    Client Alerts
  • December 08, 2014

If your company permits employees to pay for certain benefits, such as health coverage, on a pre-tax basis under an Internal Revenue Code Section 125 plan (also known as a “cafeteria plan”), you may be required to amend that cafeteria plan by December 31, 2014.

Windsor v. United States Changes.  Following the Supreme Court’s 2013 decision in Windsor v. United States holding that certain provisions of the Defense of Marriage Act (also known as DOMA) are unconstitutional,

  • employees are now permitted to pay for health coverage of same-sex spouses on a pre-tax basis,
  • employees may be reimbursed from a health care flexible spending account (“FSA”) for eligible expenses incurred by same-sex spouses, and
  • same-sex spouses may be treated as spouses under dependent care FSAs. 

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