DOES A PLAN DOCUMENT NEED TO BE DRAFTED IN ORDER TO ALLOW FOR THIS BENEFIT TO BE OFFERED? IT MY UNDERSTANDING THAT ONLY A BOARD RESOLUTION AND POLICY/PROCEDURES NEED TO BE IN WRITING TO PROPERLY IMPLEMENT THIS BENEFIT OPTION. I KNOW IT CANNOT BE PART OF A 125 PLAN.

THOUGHTS?

I am assuming that you are discussing medically related travel expenses. If you are, then those expenses are eligible for reimbursement under a Health FSA.

Actually, I suspect the original post was asking about pre-tax transportation benefits, and correctly noted that these cannot be offered under a 125 arrangement. This is true because they are excluded from income under section 132 and section 132 benefits cannot be offered in a 125 plan.

As for the original question, it is true that a formal plan document is not required for this benefit. However, it is desirable to have at least a written policy to define which employees are eligible, to explain the benefit, and to make sure administration is consistent. You'll also need to decide how to substantiate expenses as eligible for reimbursement.

Further, before implementing the program, think about what impact it will have on other benefits, e.g., compensation for qualified plan purposes.