We have an employee who elected to pass on signing up for medical and dental coverage under our 125 plan. He is currently covered under his military retirement medical plan. He has been transfered to Ireland where there are no military medical facilities. He wants to change is election to cover himself, spouse and child for medical and dental under our plan. Is this acceptable?

Yep. Under the "life status change" regs that the IRS put out in 98, a change of location out of a service area is on the list.

jreddi

Can you list the exact reg for this?
Thanks

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Does anyone have information if the IRS has announced a date for implementing these proposed life-status change regs which they postponed per their Bulletin 1998-49? I tried calling but no response.

According to recent updates we received: the IRS indicated that further guidance on change of status should be expected soon. When issued the rules would not become effective until the first plan year that begins 120 days after the new rules are published.