Employer Topics

Enrollment Changes

Because this plan is governed by Section 125 of the IRS Code, there are certain restrictions regarding when participants can make a change in their initial election for the Plan Year. Normally, changes to the original enrollment may only be made if one of the following events has occurred in the participant’s life:

• Events that change an employee’s legal marital status including marriage, divorce, legal separation, annulment or death of a spouse
• Events that change an employee’s number of dependents including birth, adoption, placement for adoption or death of a dependent or loss of dependent status
• Events that change the employment status of the employee, the employee’s spouse or the employee’s dependent including a termination or commencement of employment, a strike or lockout, a commencement of or return from an unpaid leave of absence.

Consistence Rule:
The change made by the employee must be consistent with the change that has occurred. For example, if an employee marries, they could increase their participation level in the FSA, but they could not decrease their election or discontinue participation.

Timing of Change:
Changes must normally be made within 31 days of the occurrence of the event.

To change a participant’s election for the remainder of the Plan Year, please complete an Employee Status Change Form. Send the completed, signed form to:

AdminUSA, Inc.
Attn: FSA Services
PO Box 8178
Wilson, NC 27895

Fax: (252) 265-5998