When Can I Start a Reimbursement Plan for My Company?
As a plan sponsor, you can choose to begin your reimbursement plan at any time. You can also establish any 12-month period you choose as the plan year. For example, you could maintain a calendar-year (January – December) plan year, or align the plan with the school year (September – August).
Since it is most often preferable to start the reimbursement plan as quickly as possible, there is also an option called a “short” plan year. This allows your company to start a plan “mid-year” and end at whatever date will subsequently begin the 12-month year that you choose. In other words, if your company makes the decision in May to implement a new reimbursement plan and chooses to follow the calendar year, you can begin with a short plan year of June – December, with subsequent plan years following the calendar year.
Types of reimbursement plans options include:
- Cafeteria Plans
- Flexible Spending Accounts
- Health Reimbursement Arrangements
- Health Savings Accounts
- Medical Reimbursement Plans
- Qualified Transportation Plans