Only the government would think it reasonable to continue paying health premiums for a dead ex-spouse.Death of Ex-Spouse Does Not Qualify as Status Change for Cafeteria Plan T... moreOnly the government would think it reasonable to continue paying health premiums for a dead ex-spouse.Death of Ex-Spouse Does Not Qualify as Status Change for Cafeteria Plan The IRS stated that the death of an ex-spouse does qualify as a “change in status” for altering benefit elections made under an IRC §125 cafeteria plan . An employer asked if an employee could change his cafeteria plan deductions after his former spouse died during the middle of the plan year. The employee was providing health benefits in his cafeteria plan to his former spouse because of a court order and wanted to change his election after her death. Generally, employees must make irrevocable benefit elections under a cafeteria plan before the benefit becomes available or the plan year begins, whichever is first. Changes or revocations during the plan year are allowed only under limited events: (1) Marital status changes. (2) Change in number of dependents. (... less
