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.

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