Medical 125 Accounts

[funder]

What is the name of your state? Michigan

Someone signs up for a large deduction ($4,000) for elective surgery they plan to have. The deduction has already started coming out of their check and supposedly will until the end of the year.

Problem: Employee had surgery scheduled and finds out through research that he/she is not a good candidate for this surgery.

Are there exceptions to the rule? Would getting an attorney help to stop further deductions? (No, it isn't me.)

Thank you.

 

[Beth3]

Are there exceptions to the rule? Only if a "qualifying event" takes place and I'm sorry to tell you that finding out the surgery won't be performed is not among them (not even close.)

Would getting an attorney help to stop further deductions? No. The law is very clear in specifying under what circumstances a participant can change his or her 125B deferral. There's no magic bullet around that and no legal slight-of-hand that can change those.

I can only suggest this employee utilize the money for as many other qualifying medical expenses this year as they can come up with.