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FIGHTING THE IRS FOR TAXPAYERS!
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Wednesday, June 6, 2012

IMPORTANT NOTICE FOR CAFETERIA PLANS

     The Internal Revenue Service issued Notice 2012-40 on May 30, 2012.  This Notice addresses the effective date of the $2,500 limit on health flexible spending arrangements for plans that begin a new year after December 31, 2012.  It also addresses the deadline for employers to amend their plans.  Failure to amend the plan by the deadline would cause all cafeteria plan benefits to become taxable income to the employee, as further explained in the Notice.

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