Implementing a Reimbursement Plan

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:

 

Required Plan Documents

New Plans

myCafeteriaPlan provides the following new plan documents for companies implementing a reimbursement plan:

  • Corporate Resolution – a written document that describes an action taken by the board of directors of a corporation. This document generally will authorize an individual to act on behalf of the corporation.
  • Plan Document – contains all the legal requirements and controlling provisions of the plan.
  • Summary Plan Description (SPD) – condensed from the plan document; details for participation in the plan.

Forms:

  • Enrollment – for participation
  • Claims – for claim submission
  • Worksheets – for calculation of annual election/salary reduction
  • Attorney Review & Opinion Letter (Cafeteria Plan only) at client’s request – a legal review by a benefits attorney and a letter indicating that the Plan Document complies with all necessary regulations.

Please note – that the IRS requires that SPDs be distributed to all plan participants within 90 days of enrollment. For your convenience, myCafeteriaPlan provides an online copy of your company’s SPD on your employee and administrative account pages.

Existing Plans

myCafeteriaPlan provides documents updates and amendments for plans based on when the documents were originally created, as well as any new regulations.

Options for Document-Only Clients

Occasionally a company will choose to administer their reimbursement plan “in-house” and request only the plan documents from myCafeteriaPlan. The following services are available to make in-house administration easier for your company:

  • Plan Documents, Forms, & Worksheets – all the documents and forms necessary to establish and maintain a reimbursement plan (see New Plans)
  • Non-Discrimination Testing Information – for the company to determine compliance with IRS requirements
  • Telephone Support – myCafeteriaPlan offers toll-free support for a specified period to assist your company with questions and concerns regarding your new plan. 

 

We have many different plan and service options. Find a solution that's right for your team.