The IRS published the new proposed cafeteria plan regulations on August 6, 2007.  The new proposed regulations are effective for plans year starting on or after January 1, 2009.

The new proposed regulations replace six previously issued proposed and temporary regulations under the following:

1.125-1: Qualified and non-qualified benefits in a cafeteria plan

1.125-2: Elections in cafeteria plans

1.125-5: Flexible spending arrangements

1.125-6: Substantiation of expenses

1.125-7: Non-discrimination rules

Two areas that remain unchanged are:

1.125-3- Effect of the Family and Medical Leave Act (FMLA) on the Operation of Cafeteria Plans

1.125-4- Permitted Election Changes

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