The IRS recently issued Notice 2014-55, which expands the rules regarding midyear election changes under a cafeteria plan.

Specifically, this notice allows an employee to prospectively revoke an election under a cafeteria plan to enroll in group health plan (other than a flexible spending arrangement) coverage under the following circumstances, if certain conditions are satisfied: 

  • The employee's status changed from full-time to part-time; 
  • The employee is eligible for special enrollment under the Marketplace; or
  • The employee participates in a non-calendar year cafeteria plan.

Employers may immediately allow midyear changes under this notice and have until the last day of the plan year that begins in 2015 to amend their cafeteria plans.