Are there any exceptions to the FSA nondiscrimination testing for small plans?
No. Neither Section 105(h) nor Section 125 provide for a specific size plan. Thus, any-sized self-insured plan, such as an FSA, is subject to Section 105(h) nondiscrimination testing, and any-sized cafeteria plan is subject to Section 125 nondiscrimination testing.
Last update on September, 4 2013 by Elizabeth Bonney.