What is the action that may be taken?

Beth, who works for Nugget Productions, is enrolled in the company’s cafeteria plan. Beth adopts a child in august, and requests a change in her election under the cafeteria plan.

What is the action that may be taken?
A . The employer will increase Beth’s deduction retroactively to the child’s date of birth
B. There can be no change to Beth’s deduction until the first quarter
C. Beth may change her election due to the change in family status
D. Nugget Products will suspend Beth’s deduction until the first quarter

View Answer

Answer: C