So, I totally understand that you can't revoke pre-tax payroll deduction agreement at will. My question is a bit different, I think.

Employer is cutting all employees hours in half, thus cutting pay in half, for two or three months. Employees have an employer provided HSA...no problems there, it's employer provided. Employees also have various AFLAC policies, some are pre-tax and some not. Is there a way within the IRS guidelines for the employees to revoke/cancel some or all of the supplemental policies outside of the open enrollment/change period? The employees are thinking to cancel all supplemental benefits until the next enrollment period. Is this possible?

By the way, I'm not sure what constitues a "written" cafeteria plan, but I do know that I haven't seen anything from the employer regarding the plan (except they withhold the amounts requested and forward them to AFLAC). Everything is done between the insurance company (AFLAC) agent and the employee.

Brenda E

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Anybody?? I do have what I believe to be the correct answer, but I was hoping for some validation from more experienced tax people. ;)

--Brenda

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You'll probably have to read the plans that are in place to see if either the employer or individual employees can suspend for a time. Plans sometimes have verbiage re change in family circumstances; I guess a substantial pay cut could be a change.... Also, your state department of labor may have regulations re suspension of benefits or timing of entry, re-entry, etc.

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