Nor can an FSA health plan with a deferral rule provide additional time for the year in which unused amounts can be transferred. For example, a calendar year plan to transfer unused SSA amounts for health care in 2014 to 2015 would not be permitted, but would have had additional time in the first two months and 2 months of 2014. A cafeteria plan may be based on the appropriate representation of a staff member who, through a Marketplace, has the opportunity to register a qualified health plan through a Marketplace, which staff and related persons have registered for a qualified health plan for new coverage, or who wish to enter into a new effective health plan no later than the day after the last day of the initial coverage that has been revoked. Participants in a cafeteria plan must be employees, although the plan may be reimbursed for individuals who are considered taxable persons in accordance with section 152 of the internal income code. The same facts as example 1, except that for 2014 A chooses a salary reduction of 600 $US and, on December 31, 2014, A still has $600 of unused health for FSA amounts. The amount that can be carried forward to the following year is at least: The same facts as example 2, except that on February 1, 2015, claims concerning 700 $US in expenses for the year 2014. Since the unused amount, which remains from 2014 and allows densen`s cash to be reimbursed for expenses, was reduced to $600 by February 1, 2015, Plan A reimburses only $600 of the total $700. After the refund of $600, the unused amount of 2014, from which the duties on expenses incurred during 2014 will be reimbursed, will be reduced to zero ($600 – $600). A does not charge any other fees for expenses incurred in fiscal 2014, so the amount deferred to fiscal 2015 is $0 (the total of $800 not used as of December 31, 2014, after being used to reimburse claims submitted in January 2015 ($200) and February 2015 ($600). The same facts as example 1, except that A expenses of $2,700 were created and deposited in January 2015 (not July 2015). The plan can process $500 of the unused amounts of $800 as of December 31, 2014 to cover expenses for the current year.
As a result, A is repaid for the $2,700 debt. The plan treats the first $2500 of the debt as repaid with the ACF`s 2015 health contributions and the remaining $200 of the debt with the amounts not used as of December 31, 2014. The unused amount of 2014, from which the Imkl. 600 $US ($800 to $200) will be reduced to $600 ($800 to $200). For example, an employer with a cafeteria plan year that ends December 31, 2014 has an X employee who has chosen a $1,000 salary reduction for a health FSA for the year of the plan that ends on December 31, 2014. As of December 31, 2014, X used 200 $US in its health FSA.