Has anyone heard anything from the IRS on whether the Section 125 regulations will be finalized this year? They were supposed to be issued in final form by mid-year, but it is getting late to issue final regs with a 1/1/2010 effective date. Thanks for any updates you can provide.

No news.

What's the hurry ? Is there some special reason for concern or anxiety?

I have a client who was told by their insurance company that their cafeteria plan needs to be amended. I was under the impression that cafeteria plans will need to be amended once the final regs are issued?

Is this corrent or should we be amending our cafeteria plans before the regs are finalized?

There may be other reasons for plan amendments besides the actual Sec. 125 regulations. For example ,some Sec. 125 Plan amendments may be required for the SCHIP law which was passed earlier this year.