Allocation of Excess Funds/Grace Period. The Board shall implement a grace period as allowed in the Internal Revenue Service Notice 2005-42. This Notice permits an employer to amend its Section 125 cafeteria plan to give participants in medical care and dependent care Flexible spending accounts (“FSAs”) an additional two (2) months and 15 days after the end of the plan year to spend unused amounts from the prior plan year. Unused amounts remaining in those FSA accounts at the end of the grace period will be allocated as a reimbursement to the Board of Education up to the total cost of administration of the FSA accounts. If, after paying off administrative costs, there remains an excess, then any remainder amount will be allocated to plan participants on a per capita basis.
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Samples: Agreement, Agreement, dam.assets.ohio.gov
Allocation of Excess Funds/Grace Period. The Board shall implement a grace period as allowed in the Internal Revenue Service Notice 2005-42. This Notice permits an employer to amend its Section 125 cafeteria plan to give participants in medical care and dependent care Flexible spending accounts (“FSAs”) an additional two (2) months and 15 days after the end of the plan year to spend unused amounts from the prior plan year. Unused amounts remaining in those FSA accounts at the end of the grace period will be allocated as a reimbursement to the Board of Education up to the total cost of administration of the FSA accounts. If, after paying off administrative costs, there remains an excess, then any remainder amount will be allocated to plan participants on a per capita basis.. [***NOT IN CBA: Specific language subject to
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