IRS requirements to make a change to your Benefit enrollment levels outside of Open Enrollment
Pursuant to Section 125 of the Internal Revenue Code, premiums paid by the employee for health, dental, and life insurance coverage are tax-exempt. The tax exemption applies only to premiums that are payroll deducted. For plans that provide the tax-exempt premium, the Internal Revenue Code prohibits changes in the employee's deduction during the plan year unless there is a qualifying change in status. If the County of Santa Barbara is not in compliance, the plan could lose its qualification and/or employees could be subject to an IRS audit and be required to pay additional taxes and possible penalties. The Irrevocability Rule applies to both increases and decreases in coverage, such as adding or dropping dependents from the health coverage or increasing or decreasing employee life insurance coverage.
To make any changes to you Health and Other Benefit plans outside of Open Enrollment you need to experience a Qualifying Event which are described in detail in the following 2 documents: