Welcome to Benefits Challenge. Benefits Solved.

September 10, 2007

Here is a free, fun and intriguing way to test your knowledge. Each edition of the News & Review will include a test on topics such as FMLA, COBRA, FSA, HRA, HSA along with others various topics.

Question: Ken needs $3,600 in orthodontia starting in February 2009 and lasting for 18 months. His dental plan excludes orthodontia for individuals 18 and over. He elects $4,000 in his Health FSA.

Under the Proposed Cafeteria Plan Regulations, issued in August 2007, when may Ken be reimbursed by his Health FSA?

Your Response: CORRECT

Explanation: All $3,600 upon payment, if the plan allows. The orthodontia exception to the prohibition against deferred compensation is not automatic.