Cafeteria Plans

How to Participate in a Plan

Employees elect to participate in the plan. By choosing to participate they agree to have their compensation reduced by their annual election. RMR will assist the participant in creating their own account and provide regular assistance to the client.


Cafeteria plans offer substantial tax savings. Unfortunately, some employees do not receive those benefits because they don't fully understand the value of the benefit of how the plan operates. Our specialty is increasing participation in new and existing plans. We bring added credibility to the plan because we are a truly independent administrator; our compensation is not tied to the level of participation of the individual employee.


We feel a large part of our efforts should be to educate participants so that they can make an informed decision concerning their participation. We offer onsite group enrollment meetings to educate employees and offer them in-person assistance.

Our attendance at enrollment meetings and the associated enrollment materials are included in our fees. We charge nothing for our time or materials but we do charge for the costs associated with travel for meetings outside of Colorado.


New and Existing Cafeteria Plans

Rocky Mountain Reserve will assist you with plan design, plan documents, and summary plan descriptions to ensure the plan is in compliance.

Mid-year vs. Plan Year Switch

Traditionally, it was thought that the best time to make a change was at the end of the plan year. With the experience that RMR’s employees have with new and existing plan setups, the transition process can be done at any time during the year.


  • Rocky Mountain Reserve consults on setups

  • Client signs Service Agreement

  • Client assigned to a Rocky Mountain Reserve Senior Account Administrator

  • Enrollment materials prepared

  • Enrollment meetings held

  • Client collects enrollment information and provides a copy to Rocky Mountain Reserve

  • Initial discrimination testing performed by Rocky Mountain Reserve

  • Debit cards issued to participants

  • Payroll deductions commence by the Client

  • Payroll information provided to Rocky Mountain Reserve



If this is a new plan or existing plan, we will need the following information and prefer to receive it at least 2 weeks prior to the beginning of your plan year, or the date of takeover for mid-year changes.

  1. Demographic Information that includes: name, physical address, SSN, date of birth, phone number, email address (template will be provided)

  2. Election Information that includes: name, annual election, per pay start date, and benefit code (template will be provided)



Contributions via payroll deduction can be sent to Rocky Mountain Reserve for posting to participant’s accounts in a variety of ways. Funds can be wired to RMR, sent via check, or RMR can pull the funds from your account via ACH.

With this method, we prefer to receive a contribution file each pay period to ensure accurate accounting. We will provide templates. This data can be sent in a variety of electronic file formats including Excel or CSV. We can also provide a secure FTP site to ensure the information is transferred securely.


Reimbursement requests under a Section 125 flexible spending plan are often submitted to a third-party administrator, like Rocky Mountain Reserve. All claims will be verified for eligibility per IRS policy and paid out in a timely manner. This reduces nearly all the employer’s administrative work associated with these benefits.

Non-discrimination Testing for HSA

HSA Plans and Cafeteria Plans are subject to nondiscrimination testing. The testing may limit the extent to which a Highly Compensated or Key Employee may participate in a Cafeteria Plan.

After Rocky Mountain Reserve receives the initial enrollment information, we will calculate the discrimination tests. If the Plan is close to failing the test, we will calculate the test once each quarter. If the plan is not close, we will make a final calculation at the end of the plan year.

Know The Rules

1. Employers may determine the maximum (or minimum) amounts employees may elect for the 
FSA accounts (within applicable legislative rulings).

2. The health care portion of the FSA plan is prefunded, meaning the employees can access all 
of their annual election at anytime.

3. If employees leave or are terminated during the plan year, the date of termination will be the 
last day to incur expenses to claim remaining funds. Employees may claim all available funds if expenses were incurred during the time they were employed.

4. Employers cannot ask terminating employees to repay the difference in their year to date 
contributions from year to date disbursements.

5. Employers cannot return forfeitures to employees. 

Phone: (888) 722-1223

M-F 8:00 AM - 5:00 PM MST

Copyright © 2020 Rocky Mountain Reserve