Internal Revenue Service (IRS) regulations permit employees to
drop, add or change benefit plans paid with pre-tax dollars
during the plan year when a “qualifying status change” occurs.
Changes to benefits choices must be made within 30 days of
the status change.
Qualifying status changing events include:
- Marriage
- Divorce, legal separation or annulment
- Death of employee, spouse or dependent
- Birth, adoption or placement of adoption of child
- Employment status changes for the employee, employee’s spouse
or dependent, e.g., beginning or ending employment (including
retirement) or unpaid leave of absence
- Dependent turning aging 26
Except for these types of events, employees may only change
their pre-tax benefits choices during the annual open
enrollment period.
Generally, changes may be made to benefits paid
with after-tax dollars at anytime.